San Gold arranges $130-million financing
2010-07-13 15:20 ET - News Release
Mr. Dale Ginn reports
SAN GOLD CORPORATION ANNOUNCES $130 MILLION "BOUGHT DEAL" FINANCING
San Gold Corp. has entered an agreement with a syndicate of underwriters co-led by Dundee Securities Corp. and BMO Capital Markets and including CIBC World Markets Inc., Raymond James Ltd., TD Securities Inc., Cormark Securities Inc., Wellington West Capital Markets Inc., Mackie Research Capital Corp., Stonecap Securities Inc. and Toll Cross Securities Inc.
Under the agreement, the Underwriters have agreed to purchase on an underwritten basis 32,500,000 common shares (the "Common Shares") of San Gold at a price of $4.00 per Common Share for total gross proceeds to the Corporation of $130,000,000 with the Underwriters having an over-allotment option to purchase up to an additional $19,500,000 of Common Shares. If the over-allotment option is exercised in full, gross proceeds will result in $149,500,000. The proceeds of the offering shall be used primarily for further exploration and development on the Corporation's Rice Lake Project in Manitoba, for the purchase of equipment and for general and administrative expenses and working capital.
The Common Shares to be sold under the agreement will be offered by way of a short form prospectus in all the Provinces of Canada except Quebec and the Common Shares to be sold under this offering will be offered in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended.
The offering is scheduled to close on August 4, 2010 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and other applicable securities regulatory authorities.
We seek Safe Harbor.
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