Shore Gold arranges $27.5-million private placement

2009-09-23 08:00 ET - News Release

Mr. Kenneth MacNeill reports

SHORE GOLD ANNOUNCES CONCURRENT $27.5 MILLION PRIVATE PLACEMENT OF COMMON SHARES AND FLOW-THROUGH COMMON SHARES

Shore Gold Inc. has entered into an agreement with a syndicate of agents led by RBC Capital Markets for the concurrent private placement, on a firm commitment basis, of 14.3 million common shares and 10 million flow-through common shares of the company at a price of $1.05 per common share and $1.25 per flow-through common share. The gross proceeds from the common share offering will be $15.0-million and the gross proceeds from the flow-through common share offering will be $12.5-million for gross proceeds of $27.5-million.

The net proceeds of the offering will be used to advance the development of Shore's Star kimberlite and its Orion kimberlite cluster within the Fort a la Corne joint venture and for general corporate purposes. The net proceeds of the flow-through common share offering will be used by Shore to incur Canadian exploration expenses prior to Dec. 31, 2010. Shore will renounce the qualifying expenditures to subscribers of flow-through shares for the fiscal year ended Dec. 31, 2009.

The offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the Toronto Stock Exchange. Closing is expected on or about Oct. 9, 2009.

We seek Safe Harbor.