Sage Gold Inc. Announces Non-Brokered Private Placement and Extends Debt Facility
– Momentum Public Relations –
Press Release: April 29, 2016
Sage Gold Inc. (TSX VENTURE:SGX) is pleased to announce that it intends to complete a non-brokered private placement (the “Offering”), subject to regulatory approval. The Offering will consist of the sale of approximately 7,000,000 units at the price of $0.05 per unit.
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.
It is anticipated that Insiders of the Company will participate in the Offering, thereby making the Offering a “related party transaction” as defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”).
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.
The Corporation may at its discretion sell additional common share units to raise additional proceeds of up to thirty per cent (30{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}) of the Gross Proceeds of the Offering.
Securities issued pursuant to the Offering shall be subject to a four-month hold period commencing on the Closing Date under applicable Canadian securities laws. The Corporation intends to use the net proceeds from the Offering for general working capital purposes.
The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange and the securities regulatory authorities.
Debt Facility – The Corporation has exercised its option to extend the secured term debt facility (the “Facility”) to October 15, 2016. An extension fee of $61,000 and accrued interest of 12{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} annually will be paid at maturity. The current principal and interest owed is $2.27 million. All other material terms and conditions of the Facility remain unchanged.
About Sage Gold
Sage Gold 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 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} polymetallic owned Lynx property and other exploration properties in the Beardmore-Geraldton Gold Camp and the Clavos Gold property in Timmins. 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.