San Gold completes $84.53-million bought-deal offering
Ticker Symbol: C:SGR

San Gold completes $84.53-million bought-deal offering

San Gold Corp (C:SGR)
Shares Issued 278,278,380
Last Close 8/3/2010 $3.90
Wednesday August 04 2010 - News Release

Mr. Dale Ginn reports

SAN GOLD CORPORATION ANNOUNCES CLOSING OF $80M SHORT FORM PROSPECTUS OFFERING

San Gold Corp. has closed its short-form prospectus offering, previously announced in Stockwatch on July 13, 2010, and July 14, 2010, of 20 million common shares at a price of $4 per common share, for total gross proceeds of $80-million. 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., acted as underwriters for the offering. In connection with the offering, the underwriters received a cash commission equal to 5 per cent of the gross proceeds raised under the offering. The underwriters also sold an additional 1,133,100 common shares pursuant to the overallotment option granted to the underwriters for an additional $4,532,400 in gross proceeds to the corporation. Accordingly, the total gross proceeds raised by the corporation pursuant to the offering were $84,532,400.

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, for general and administrative expenses, and working capital.

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