Exploration PP...

Posted by: red911 on October 15, 2008 12:36PM

Very nice to see... San Gold just announced closing of $20 million financing at $1.50... currently trading at $0.83... FYI... this money to be used for EXPLORATION... see below. San Gold has ~222 million shares outstanding pre-PP.

Proves if you have great properties you can raise money in this environment at more reasonable valuations. IMO 'typical' exploration companies will have some trouble raising funds or be forced into arrangements at huge discounts... But... because of magnitude of discovery and massive amount of work underway just next door SGX does not fall into that category IMO.

red911

San Gold closes $20.02-million financing

2008-10-15 12:02 ET - News Release

Mr. Dale Ginn reports

SAN GOLD ANNOUNCES CLOSING OF $20 MILLION "BOUGHT DEAL" PRIVATE PLACEMENT AT $1.50 PER SHARE

San Gold Corp. has closed its private placement offering of 13.35 million common shares of the company, issued as flow-through shares within the meaning of the Income Tax Act (Canada), at a price of $1.50 per flow-through share for total gross proceeds to the company of $20,025,000. Dundee Securities Corp., Cormark Securities Inc. and National Bank Financial Inc. acted as underwriters for the offering. The flow-through common shares are subject to a hold period of four months and a day from the date of issuance in accordance with applicable securities laws and the policies of the TSX Venture Exchange.

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 net proceeds of the offering will be used for accelerating the exploration and evaluation of the new high-grade Hinge zones, as well as initial exploration and evaluation of the Cartwright/Gabrielle zones and the Timmins, Ont., properties of the company going into 2009. The recently discovered Hinge zone deposits, located approximately 1.3 kilometres east of the company's Rice Lake mine, are a result of a new geological model as developed by San Gold geologists and the resulting aggressive exploration. This model differs greatly from past explorers and producers in the Rice Lake greenstone belt in that it places more emphasis on structural controls rather than specific geological units, resulting in high-grade gold deposits being discovered recently in underexplored volcanic units. These volcanic units are located to the north and east of current operations, and will be the focus of San Gold's future exploration, development and production.