Sage (SGX:tsxv) Drills Onaman and Clavos
Sage Drills Onaman and Clavos
– Momentum Public Relations –
Press Release: February 8, 2017
Sage Gold Inc. (the “Company”) (TSX VENTURE:SGX) is pleased to announce the commencement of a drilling program at Sage’s Onaman property in northwestern Ontario. This program is being carried out simultaneously with that underway on the Clavos gold property in Timmins announced on January 19, 2017.
With a history of episodic exploration activity dating back several decades, the Onaman property hosts numerous historical mineralized zones and occurrences that have been partly delineated to date. Hosted in a sequence of hydrothermally altered and tectonized mafic through felsic volcanics and derived volcaniclastics, the Onaman property displays the main features of a typical volcanogenic massive sulphide (“VMS”) system, and is consequently considered to host significant exploration potential. Sage will complete a preliminary program comprising 1,000 meters, drilled into the historical Headway zinc-silver-lead±gold deposit.
As discussed in the Company’s recent Onaman news release, a reassessment of the Lynx deposit – the historical focus of Sage’s exploration efforts on the property, has established that it is a “footwall feeder zone” of the type typically found underlying VMS deposits. The fact that the Headway lies immediately above it where the main mineralized body in a VMS system is typically found renders this historical mineralized zone significant from an exploration perspective.
Nigel Lees, President and CEO, commented: “The Headway and Lynx deposits, hosting a combination of base and precious metals between them, are two important parts of the as yet incomplete Onaman story. This current drilling program will help to further unravel it. It nicely compliments Sage’s ongoing drilling program at the company’s Clavos gold deposit where two holes have been completed between the main mine trend and the 960 zone.”
The juxtaposition of the Lynx deposit in the underlying footwall mafic volcanics, and the Headway deposit in the overlying mixed volcanic sequence (named the “In Between Zone” or “IBZ”), is suggestive of the typical mineralogical zoning seen in VMS systems where copper-dominant mineralization is found lower in the system and zinc-dominant mineralization is found in the upper parts of the system. Both deposits feature a hydrothermal alteration assemblage typical of VMS systems. Whereas both the Lynx and Headway are limited in size and grade to the extent that they have been drilled, to date, the exploration potential of the immediate area given the juxtaposition of these features is considered to be significant.
As a first step toward vectoring in on previously untested targets in this area, Sage is drilling a number of holes into the Headway deposit at and near holes drilled by Headvue Mines in 1951. Historical drilling over a strike lengthy approaching 1 kilometre intersected numerous, mostly narrow intervals of zinc-silver-lead±gold mineralization – up to a few meters wide and ranging mostly in the single digits for zinc and lead and up to and exceeding 100 g/t silver, along with wider intervals up to and exceeding ten meters or more of lower grade zinc-silver-lead±gold mineralization averaging in one-tenth the grade range. Sage geologists believe that this zone may be near a zone of focused hydrothermal discharge and associated metal concentration, and that the lithological, alteration, mineralogical and geochemical data derived from detailed analyses of fresh drill core may provide critical clues enabling them to vector in on previously undetected VMS targets in the immediate area.
The Company will provide additional information and updates regarding its progress at the Onaman and Clavos properties on a timely basis.
The technical content of this news release has been reviewed and approved by Sage’s consulting geologist, Avrom E. Howard, MSc, PGeo, who is a Qualified Person (“QP”) as defined in National Instrument 43-101.
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, 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} owned, in Timmins and the 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} owned Onaman 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.
Sage Gold Inc. (SGX:tsxv) Amends Terms of Hard Dollar Private Placement
Sage Gold Inc. Amends Terms of Hard Dollar Private Placement
– Momentum Public Relations –
Press Release: December 21, 2016
Sage Gold Inc. (the “Corporation”) (TSX VENTURE:SGX) announces that it has amended the terms of the Hard Dollar unit as previously announced on December 6th, 2016. The Hard Dollar unit will be priced at $0.11 per Unit versus the previous price of $0.12 per unit. The terms of the half warrant associated with the Hard Dollar unit and the flow through shares remain unchanged. Refer to the press release of December 6th.
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 flow through share Offering to incur Canadian Exploration Expenses (CEE) on its eligible projects and the proceeds of the Hard Dollar Units 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.
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 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Clavos Gold property in Timmins and the 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} owned Onaman property including the 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.
Sage Gold Inc. Announces Non-Brokered Private Placement
Sage Gold Inc. Announces Non-Brokered Private Placement
– Momentum Public Relations –
Press Release: December 06, 2016
Sage Gold Inc. (the “Corporation”) (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 8 million Hard Dollar Units (“HD Units”) at $0.12 per HD Unit and 6 million Flow-Through shares (“FT shares”) at $0.14 per FT share. Each HD Unit includes one Common Share of the Corporation plus one half (1/2) of one Common Share purchase warrant (each whole warrant, a “Warrant”) for gross proceeds of Cdn$960,000. Each full Warrant entitles its holder to purchase one Common Share (a “Warrant Share”) at an exercise price of $0.24 for a period of 24 months following the Closing Date, whereupon the Warrants will expire. Each Flow-Thorough common share will be issued on a flow-through basis. Total proceeds of the FT shares will be Cdn$840,000. Eligible finders may receive cash and / or compensation shares up to 10{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the Offering.
If the Corporation’s shares trade at or above $0.35 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 or flow-through shares to raise additional proceeds of up to twenty-five per cent (25{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}) of the Gross Proceeds of the Offerings.
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 FT share Offering to incur Canadian Exploration Expenses (CEE) on its eligible projects and the proceeds of the HD Units 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.
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 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Clavos Gold property in Timmins and the 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} owned Onaman property including the 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.
Sage Completes Equity Placement; Buys Kirkland’s 40 Clavos Interest
Sage Completes Equity Placement; Buys Kirkland’s 40{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Clavos Interest
– Momentum Public Relations –
Press Release: November 21, 2016
Sage Gold Inc. (the “Corporation”) (TSX VENTURE:SGX) is pleased to announce that it has completed a C$1.85 million equity investment (the “Equity Investment”) by way of a private placement with CRH Mezzanine Pte. Ltd (“CRH Mezzanine”), and has executed a C$9.65 million secured gold prepayment investment (the “Gold Prepayment”) with CRH Funding II Pte. Ltd. (“CRH Funding”). Both CRH Mezzanine and CRH Funding are wholly-owned by Cartesian Royalty Holdings Pte. Ltd. The Equity Investment and Gold Prepayment comprise of the previously announced financing package of C$11.5 million (the “Financing”) provided by Cartesian Royalty Holdings Pte. Ltd. to fund the development and restart of the Corporation’s Clavos project situated in the Timmins mining camp in Ontario, Canada.
Sage’s President and CEO Nigel Lees commented, “We announced the financial package of C$11.5 million with CRH on September 29th. Since then we have completed the following;
-Purchased the 40{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} minority interest in Clavos from Kirkland Lake Gold Inc. for C$1.0 million
-Received a Change in Project Status for Clavos and is now permitted for production
-Completed a C$1.85 million equity placement with CRH
-Signed a binding toll milling agreement with Primero Mining’s Stock Mill
-Executed a C$9.65 million Gold Prepayment Agreement to retire the current secured debt and finance the Clavos restart
We are looking forward to dewatering and rehabilitating the underground workings at Clavos which will allow the Corporation to begin to define the stope blocks and provide underground drill stations to test the down plunge extensions of the existing zones. The change of project status allows Sage to produce up to 700 tonnes a day.”
About the CRH Equity Investment
Under the terms of the Equity Investment, CRH Mezzanine has invested C$1.85 million for (i) 10,700,000 units (the “Units”) of the Corporation at a subscription price of C$0.10 per Unit, and (ii) 7,800,000 special warrants (the “Special Warrants”) of the Corporation at a subscription price of C$0.10 per Special Warrant. Each Unit consists of one common share and one common share purchase warrant, with each warrant exercisable for one common share at a price of C$0.1575 cents for a period of three years. Each Special Warrant entitles CRH Mezzanine to acquire one (1) Unit for no additional consideration. The Equity Investment has been structured such that CRH Mezzanine will not at any time own more than 19.9{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the issued and outstanding common shares of the Corporation. In addition, CRH Mezzanine has the right to acquire its pro rata share of future equity investments completed by Sage as long as it exercises control or direction over 5{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} or more of the issued and outstanding common shares of Sage.
About the Gold Prepayment Agreement
Under the terms of the Gold Prepayment, CRH Funding will provide the Corporation with C$9.65 million payable in three tranches, subject to fulfillment of customary conditions. In consideration, the Corporation will deliver to CRH Funding 15.0{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of gold produced at Clavos commencing on the latter of; (i) the beginning of Commercial Production and (ii) 12 months from the date of payment of the first tranche of the Gold Prepayment, but in all cases no later than December 27, 2017, for a period of 72 months of Commercial Production, subject to a minimum total delivery of 16,100 ounces of gold (“Minimum”) and a maximum of 26,000 ounces of gold (“Maximum”). In the event that the Minimum has not been delivered within 72 months of Commercial Production at Clavos, the delivery obligation will continue until the Minimum has been delivered to CRH Funding. The obligations of the Corporation under the Gold Prepayment are secured against all of the assets of the Corporation, including its interest in the Clavos project.
About the Purchase of the 40{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Clavos Interest
As part of the closing of the Financing, Sage completed the previously announced acquisition of the remaining 40{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} interest in the Clavos project from St Andrew Goldfields Ltd., a wholly-owned subsidiary of Kirkland Lake Gold Inc. The acquisition was completed for C$1.0 million and a 2{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Net Smelter Return Royalty. The C$1.0 million was satisfied from the proceeds raised from the Equity Investment. Sage now owns a 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} interest in the property.
Sage currently plans to complete a reserve estimate and a prefeasibility study regarding the Clavos project. In the event that a production decision is made that is not based on a feasibility study of mineral reserves demonstrating economic and technical viability prepared in accordance with National Instrument 43-101, readers are cautioned that there is increased uncertainty and higher risk of economic and technical failure associated with such production decisions.
Before giving effect to the Equity Investment, Nigel Lees, President and CEO of the Corporation owned and controlled, directly or indirectly 4,282,881 common shares of the Corporation, representing approximately 10{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the issued and outstanding common shares of the Corporation. After giving effect to the Equity Investment, the number of common shares Mr. Lees beneficially owned, directly or indirectly over which control or discretion is exercised was diluted causing his common share ownership to fall below 10{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the issued and outstanding common shares of the Corporation. This notification of the decrease in Mr. Lees share ownership below the early warning reporting threshold is being issued in accordance with National Instrument 62-103, The Early Warning System and Related Take-Over Bid and Insider Reporting Issues. For the purposes of this disclosure, the address of Mr. Lees is 200 University Avenue, Suite 1301, Toronto, Ontario M5H 3C6. . The early warning report respecting the transaction will be filed on System for Electronic Document Analysis and Review (SEDAR) under Sage’s issuer profile. To obtain a copy of the early warning report filed by Mr. Lees, please contact the Corporation at 416-204-3170 or refer to SEDAR under Sage’s issuer profile.
Shares for Debt
Sage further announces that it intends to complete a debt settlement transaction (the “Debt Settlement”) with certain creditors (“Creditors”), providing for the settlement of approximately $112,263 through the issuance of an aggregate of 935,528 common shares of the Corporation (“Common Shares”) at a deemed issue price of $0.12 per Common Share. The Debt Settlement is subject to regulatory approval. The Corporation expects to complete the Debt Settlement shortly after such approval is obtained.
About CRH
CRH Mezzanine and CRH Funding are wholly-owned subsidiaries of Cartesian Royalty Holdings Pte. Ltd. (“CRH”). CRH offers innovative financing structures with the goal of creating long-term growth and value in world-class gold projects around the globe. CRH is an affiliate of Cartesian Capital Group, LLC, a global private equity firm with proven expertise in assisting closely-held companies develop into global market leaders. Cartesian Capital Group manages more than US$2.4 billion in capital and has offices in New York, Sao Paulo, Shanghai, Warsaw, and Bermuda.
About Sage Gold Inc.
The Corporation 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} owned Clavos Gold property in Timmins and the 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} owned Onaman 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.
Sage Gold (SGX:tsxv) to Acquire Remaining 40 Interest in Clavos
Sage to Acquire Remaining 40{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} Interest in Clavos
Sage Gold Inc. (TSX VENTURE:SGX) (“Sage”) has entered into an agreement to acquire the remaining 40{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} interest in the Clavos Gold property (“Clavos”) located in Timmins, Ontario from St Andrew Goldfields Ltd., a wholly-owned subsidiary of Kirkland Lake Gold Inc. (collectively referred to as “Kirkland Lake Gold”).
As part of the agreement, Sage is required to pay Kirkland Lake Gold $1,000,000 in cash and grant Kirkland Lake Gold a two percent (2{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}) Net Smelter Return Royalty (“Royalty”) over Clavos. Sage may at any time purchase one-half of the Royalty by providing Kirkland Lake Gold written notice as well as a cash payment of $1,000,000, which will thereby reduce the Royalty rate to one percent (1{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}). On completion of this agreement Sage will own 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of Clavos, subject to certain pre-existing royalty interests.
The agreement is subject to a number of conditions including the completion of an equity investment of $1.85 million by CRH Mezzanine Pte. Ltd. a wholly-owned subsidiary of Cartesian Royalty Holdings Pte. Ltd and regulatory approval. This equity investment forms part of an $11.5 million financing package to be provided by Cartesian Royalty Holdings Pte. Ltd. The financing will be used to fund the purchase of Kirkland Lake Gold’s interest in Clavos, the development and restart of the Clavos Gold project, retire outstanding secured debt and fund working capital.
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.
Sage Gold Inc. (SGX:tsxv) Signs Term Sheet for Financial Package of $11.5 Million
Sage Gold Inc. – Project and Equity Financing
– Momentum Public Relations –
Press Release: September 30, 2016
Sage Gold Inc. (the “Corporation“) (TSX VENTURE:SGX) is pleased to announce that it has executed a binding Term Sheet with Cartesian Royalty Holdings Pte Ltd. (“CRH”) to provide the Corporation with a financing package of C$11.5 million (the “Financing”) to fund the development and restart of the Corporation’s Clavos project (“Clavos”) situated in the Timmins mining camp in Ontario, Canada.
The financing package comprises a C$9.65 million secured gold prepayment investment (the “Gold Prepayment”) and a C$1.85 million equity investment (the “Equity Investment”).
Under the Equity Investment, CRH will invest C$1.85 million in exchange for units of the Corporation at a price of C$0.10 per unit. Each unit will consist of one common share and one common share purchase warrant, with each warrant exercisable for one common share at a price of Canadian 15.75 cents for a period of three years. The investment will be structured such that CRH will not at any time own more than 19.9{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the issued and outstanding common shares of the Corporation. CRH agreed to escrow up to 25{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the common shares that it acquires for a term to be agreed by the parties. CRH will have a participation right in any future equity financings by the Corporation in order to maintain CRH’s equity position.
Under the terms of the Gold Prepayment, CRH will commit to providing the Corporation with C$9.65 million payable in two tranches. In consideration, the Corporation will agree to deliver to CRH 15.0{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of gold produced at Clavos commencing on the later of (i) the beginning of Commercial Production and (ii) 12 months from the date of payment of the first tranche of the Gold Prepayment, but in all cases no later than December 27, 2017, for a period of 72 months of Commercial Production, subject to a minimum total delivery of 16,100 ounces of gold (“Minimum”) and a maximum of 26,000 ounces of gold (“Maximum”). In the event that the Minimum has not been delivered within 72 months of Commercial Production at Clavos, the delivery obligation will continue until the Minimum has been delivered to CRH. The obligations of the Corporation under the Gold Prepayment will be secured against all of the assets of the Corporation, including its interest in the Clavos project.
The completion of the Financing is subject to a number of conditions including satisfactory due diligence by CRH, regulatory approval, including the approval of the TSX Venture Exchange and preparation of definitive documentation. In addition, the Corporation is required to reach agreement to acquire the 40{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} joint venture interest in the Clavos project that it does not currently own and to arrange for the repayment of the Corporation’s existing secured credit facility. A portion of the proceeds of the equity investment is allocated to the acquisition of the joint venture interest.
Subject to satisfaction of the conditions precedent, the signing of the definitive agreement for the Gold Prepayment and the completion of the Equity Investment are scheduled to occur on October 27, 2016, with funding under the Gold Prepayment to occur by no later than November 11, 2016.
Nigel Lees, President and CEO of the Corporation stated, “We are very pleased to be entering into this transaction with CRH. The funds generated through the equity and streaming investments will allow the Corporation to reopen the Clavos mine, strengthen the Corporation’s balance sheet and provide ongoing working capital. Sage is preparing the necessary documentation to meet all regulatory requirements including filing with the Ministry of Northern Development and Mines a “Notice of Project Status” to change the status of the Clavos project from inactive to active. The change in status will allow the Corporation to produce up to 700 tonnes per day as defined in the Closure Plan and subsequent amendments. We are eager to dewater and rehabilitate the underground workings at Clavos in that it will allow the Corporation to begin defining the stope blocks and provide underground drill stations to test the down plunge extensions of the existing zones. We are in an environment of C$1700 plus gold prices which enhances the economics of the Clavos project.”
Peter Yu, Director of CRH stated, “Clavos is a unique high-grade project that is permitted for production and located in a premier Canadian mining jurisdiction. We are confident that Nigel Lees and the Sage team are the right group to lead the project back to successful production and unlock Clavos’ value.”
Highlights of the Clavos mine:
- New NI43-101 resource estimate completed in October 2012 includes Indicated mineral resources of 1,258,400 tonnes at 4.81 g/t Au totaling 194,600 ounces of gold and Inferred mineral resources of 796,000 tonnes at 4.7 g/t Au, representing 120,000 ounces. These resources are reported at a base case cut-off grade of 2.75 g/t Au and individual assays have been capped at 60 g/t.
- St. Andrew Goldfields (“SAS”) invested $35 million on the development of the Clavos deposit (SAS is now wholly owned by Kirkland Lake Gold).
- The existing infrastructure in place includes; underground ramp access to the 300 metre level, underground levels developed every 25 metres, power to site, surface ventilation system and water management system
- In preparation for definition and exploration drilling of the existing mine workings following the planned dewatering, Sage has successfully completed a 3D modeling exercise in Datamine which incorporates the entire Clavos database including all drilling, assaying, digitized lithological interpretations and the location of the underground workings. The assay data was differentiated between different lithological units and was decluttered to remove the distortion of higher drill densities in certain parts of the deposit. The purpose of this exercise was to analyze the correlation between gold concentrations, lithological host units and structural controls in the deposit.
The current plan of Sage is to complete a reserve estimate and a pre-feasibility study regarding the Clavos project. If a production decision is eventually made which is not based on a feasibility study of mineral reserves demonstrating economic and technical viability prepared in accordance with National Instrument 43-101, readers are cautioned that there is increased uncertainty and higher risk of economic and technical failure associated with such production decisions.
The scientific and technical disclosure in this press release has been reviewed and approved by Mr. Robert Ritchie, P.Eng., a consultant to the Corporation, who is a qualified person within the meaning of National Instrument 43-101.
CRH, which has its head office at 10 Changi Business Park Central 2, #05-01 HansaPoint, Singapore 486030, will be filing an early warning report in connection with the Equity Investment in accordance with applicable Canadian securities laws. The exact number of units to be acquired by CRH which have voting rights is not determinable on the date of this press release. However, as described above, such number will be equal to 19.99{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the issued and outstanding shares of the Corporation on the date of closing of the Equity Investment. CRH does not currently beneficially own, or exercise control or direction over, any securities of the Corporation. The total consideration to be paid by CRH under the Equity Investment is C$1.85 million. Such early warning report will be available under the Corporation’s SEDAR profile at www.sedar.com or by contacting Andrew Wehrley of CRH at (212)461-6363.
About Sage Gold Inc.
The Corporation 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, 60{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} owned, 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.
Sage Gold (SGX:tsxv) Announces Closing of Oversubscribed Flow-Through Private Placement
Sage Gold (SGX:tsxv) Announces Closing of Flow-Through Private Placement
– Momentum Public Relations –
Press Release: September 13th,2016
Sage Gold Inc. (the “Corporation”) (TSX VENTURE:SGX) is pleased to announce that, further to its press release dated August 29, 2016, it has completed the closing of its non-brokered private placement (the “Offering“). The issue was oversubscribed. The Corporation will be issuing 6,250,000 Units at a price of $0.10 per Unit for gross proceeds of $625,000. Each Unit will include one common share of the Corporation issued on a flow-through basis (“Flow-Through Share”) plus one half (1/2) of one Common Share purchase warrant (each whole warrant, a “Warrant”). Each whole Warrant entitles its holder to purchase one Common Share (a “Warrant Share”) at an exercise price of $0.20 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 $20,750 will be paid in cash and 207,500 in compensation shares to certain eligible finders. The outstanding shares after this financing are 43,098,481 shares. The Corporation intends to use the net proceeds from the Offering to incur Canadian Exploration Expenses (CEE) on its Onaman and Clavos projects.
If the Corporation’s shares trade at or above $0.30 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.
Two (2) insiders of the Company participated 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“). Mr. Gary Robertson, a Director of the Company, purchased, 300,000 Units pursuant to the Offering and will own or control 853,483 shares or approximately 2.0{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the total shares issued and outstanding after the completion of the Offering and Nigel Lees, Chief Executive Officer, purchased indirectly 170,000 Units pursuant to the Offering and will own or control 4,282,881 shares or approximately 10{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. Robertson or Mr. Lees 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.
Director Resignation
The Company announces that Mr. Sandy Chim has requested that he step down from the Board of Directors of the Corporation. Mr. Chim has and will continue to be a strong supporter of Sage. The Board thanks Mr. Chim for the wisdom and guidance that he has tirelessly provided over the past several years.
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, 60{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} owned, 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.
Sage Gold Inc. (SGX:V) Clavos Update: Progress in Restarting Production
Sage Gold Inc. – Clavos Update: Progress in Restarting Production
– Momentum Public Relations –
Press Release: August 08, 2016
Sage Gold Inc. (TSX VENTURE:SGX) has made considerable progress in restarting production at the Clavos gold mine site in Timmins, Ontario.
Approximately $35 million was spent on the Clavos underground infrastructure and the mine was briefly in production from 2005 to 2007. Since acquiring an interest, Sage has spent approximately $4 million on compilation and analysis of the deposit, including surface exploration drilling, a new 43-101 Resource Study and Preliminary Economic Assessment. Before production can commence the existing mine workings will be dewatered and rehabilitated. The Company will then undertake underground definition and exploration drilling.
Sage is proceeding with advanced negotiations for project financing of Clavos including working capital needs of the Company as well as arrangements with nearby milling facilities for Clavos ore. The company is preparing the necessary documentation to meet all regulatory requirements including filing with the Ministry of Northern Development and Mines a “Notice of a Change of Status” of the Clavos mine site from inactive to active. The change of status will allow Sage to produce up to 700 tonnes per day of mineralized material from the Clavos mine pursuant to the existing Closure plan of 2004 as amended and accepted November 9, 2012.
Nigel Lees, President and CEO commented, “We remain very bullish on the future price of gold. The Clavos gold deposit is one of the few gold deposits in Canada with advanced permits situated in one of the most prolific and active gold camps in Canada. The improved investment environment for precious metal companies and the relatively low capital costs required to place Clavos into production has greatly facilitated the Company’s ability to move the project ahead.”
The base case for the preliminary economic assessment (PEA) of the Clavos project was published in March 2013 using a gold price of US$1500 at a time when the exchange ratio was 1:1 with the Canadian dollar. The current gold price in Canadian dollars is over $1750 per ounce.
Highlights of the PEA published in March 2013;
- NET PRESENT VALUE of $23.2MM (pre-tax) and $12.6MM (after-tax) at an 8{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} discount
- INTERNAL RATE OF RETURN of 71{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} (pre-tax) and 47{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} (after-tax) based on US$1500/oz of gold
- ANNUAL AVERAGE PRODUCTION of approximately 20,000 oz. of gold per year
- Initial CAPEX of $14.1 million
- 2 YEAR PAYBACK from start of production with 7 year mine life
- Average HEAD GRADE of gold ranging from 6.45 g/t in Year 1 to 4.37g/t in Year 7
Note – assumes an exchange rate of 1:1 of CDN to US Dollar;
- tax rates are based on a blended rate between Sage and SAS (now Kirkland Lake Gold)
- excludes any financing costs
- contingency on capital expenditures of 30{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}
- CAPEX figures represents 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of financing
The PEA does not indicate the economic viability of the mineral resource and is preliminary in nature, includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and that there is no certainty that the PEA will be realized. Mineral resources that are not mined reserves do not have demonstrated economic viability.
The PEA on the Clavos deposit was prepared by R. Ritchie P.Eng, an Independent Qualified Person. Mr. Ritchie provided overall responsibility for the technical content related to the Clavos PEA which includes the mining study CAPEX and OPEX cost estimates and conceptual economics.
GEOLOGICAL MODELLING
In preparation for definition and exploration drilling of the existing mine workings following the planned dewatering, Sage has successfully completed a 3D modeling exercise in Datamine which incorporates the entire Clavos database including all drilling, assaying, digitised lithological interpretations and the location of the underground workings. The assay data was differentiated between different lithological units and was decluttered to remove the distortion of higher drill densities in certain parts of the deposit. The purpose of this exercise was to analyze the correlation between gold concentrations, lithological host units and structural controls in the deposit.
The technical content of this news release has been reviewed and approved by Sage’s consulting geologist, Peter Hubacheck P.Geo. of Hubacheck Consulting Geologists Inc., who is a qualified person (QP) as defined by NI 43-101.
For further information please refer to our new website www.sagegoldinc.com designed to better inform the shareholders and the public about the Company.
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.
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