| February 23, 2012 |
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San Gold Announces $15.0 Million Private Placement
Funds to Advance Rice Lake Exploration Programs
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WINNIPEG, MANITOBA--(Marketwire - Feb. 23, 2012) -
THIS PRESS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES.
San Gold Corporation (TSX:SGR)(OTCQX:SGRCF) (the "Company") is pleased to announce that it has entered into a letter of engagement with Primary Capital Inc. and a syndicate of agents (the "Agents"), under which the Agents have agreed to offer, on a guaranteed agency private placement basis, 7,150,000 flow-through common shares (the "Flow-Through Shares") of the Company at a price of $2.10 per Flow-Through Share for total gross proceeds to the Company of $15,015,000. Under the agreement, the Agents have an option, exercisable at any time on or before the second business day prior to the closing date, to offer up to an additional 2,390,000 Flow-Through Shares for $5,019,000 in additional gross proceeds.
Closing of the offering is scheduled to occur on or about March 15, 2012. All securities issued will be subject to a four month hold period. The offering is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals.
The net proceeds will be used to continue exploration and development on the Company's Rice Lake property.
These securities being offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold in the United States or to, or for the benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) absent registration or an applicable exemption from registration requirements. This release does not constitute an offer for sale of securities in the United States.
About San Gold
San Gold is an established Canadian gold producer, explorer, and developer that owns and operates the Hinge, 007, and Rice Lake mines near Bissett, Manitoba. The Company employs more than 400 people and is committed to the highest standards of safety and environmental stewardship. San Gold is on the Toronto Stock Exchange under the symbol "SGR" and on the OTCQX under the symbol "SGRCF".
For further information on San Gold, please visit www.sangold.ca.
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