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A gold mining, and exploration company with an extensive land package in the Timmins mining district

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Message: Achieves Its US$20 Million Financing Objective by Closing a US$4 Million Royalty
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Achieves Its US$20 Million Financing Objective by Closing a US$4 Million Royalty

posted on May 06, 2009 10:32AM
May 6, 2009
St Andrew Achieves Its US$20 Million Financing Objective by Closing a US$4 Million Royalty Financing With Franco-Nevada
OAKVILLE, ONTARIO--(Marketwire - May 6, 2009) -

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St Andrew Goldfields Ltd. (TSX:SAS) ("St Andrew" or the "Company") is pleased to announce that it has closed on May 5th, 2009 its previously announced royalty financing pursuant to which the Company granted Franco-Nevada Corp. ("Franco-Nevada") a 4% NSR royalty on its Hislop Project for gross proceeds of US$4.0 million. The royalty is subject to an annual minimum royalty payment-in-kind of 1,200 ounces of gold payable in equal monthly instalments commencing in February 2010, for a maximum of 8,000 ounces of gold, with the minimum royalty payments to be credited against future royalty obligations. The Company has also granted Franco-Nevada a senior security interest in its Hislop property until the 8,000 ounces have been paid.

The completion of this financing, in conjunction with the US$16.2 million Senior Gold Notes financing completed on April 21, 2009, allows the Company to have sufficient cash to put the Holloway mine into production by the fourth quarter of 2009, to complete a National Instrument 43-101 compliant technical report on the Hislop Project in June 2009 which it is anticipated will enable a positive production decision to be made on Hislop and to advance the development of the Hislop Project.

About St Andrew

St Andrew is a gold mining and exploration company with operations in Timmins, Ontario. St Andrew controls a large land position in the Timmins Mining Camp and an extensive land position at Eskay Creek in northern British Columbia.
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