Sage Gold Inc. Announces Closing of Second and Final Tranche of Private Placement
– Momentum Public Relations –
Press Release: June 7, 2016
Sage Gold Inc. (TSX VENTURE:SGX) is pleased to announce that, further to its press release dated May 26, 2016, it has completed the second and final tranche closing of its non-brokered private placement (the “Offering“). The Company will be issuing 5,610,000 Units at a price of $0.05 per Unit for gross proceeds of $280,500. Each unit will consist of one common share of the Corporation (a “Common Share”) plus one half (1/2) Common Share purchase warrant (a “Warrant”). Each full Warrant entitles its holder to purchase one Common Share (a “Warrant Share”) at an exercise price of $0.10 for a period of 24 months following the Closing Date, whereupon the Warrants will expire.
The securities issued pursuant to the Offering will be subject to a four (4) month and one (1) day statutory hold period. In connection with the Offering, a finder’s fee of $16,200 will be paid in cash to certain eligible finders on the second tranche. The Corporation intends to use the net proceeds from the Offering for general working capital purposes.
The offering was over-subscribed and the total units issued were 10,695,000 with total proceeds of $534,750. The outstanding shares after this financing are 36,640,981.
If the Corporation’s shares trade at or above $0.20 per share for 20 consecutive trading days, the Corporation may, at any time after the expiry of the statutory hold period, accelerate the expiration of the Warrants upon not less than 30 days written notice by the Corporation, and thereafter repurchase any unexercised Warrants at $0.001 per underlying common share.
One (1) insider of the Company participated in the Offering, thereby making the Offering a “related party transaction” as defined underMultilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101“). Mr. Peter Freeman, a Director of the Company, purchased, 100,000 Units pursuant to the Offering and will own or control 561,667 shares or approximately 1.5{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the total shares issued and outstanding after the completion of the Offering. The Offering was exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as the Company is not listed under a specified market (as set out in section 5.5(b) of 61-101) and the fair market value of the shares issued to, nor the consideration paid by Mr. Freeman exceeded 25{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the Company’s market capitalization. No new insiders were created, nor has any change of control occurred as a result of the Offering.
About Sage Gold
The Company is a mineral exploration and development company which has primary interests in near-term production and exploration properties in Ontario. Its main properties are the Clavos Gold property in Timmins and the 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} owned Lynx copper, gold, silver property and other exploration properties in the Beardmore-Geraldton Gold Camp. Technical reports and information relating to the properties can be obtained from the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com and www.sagegoldinc.com.