Barkerville Gold Mns Ltd BGMZF

SGR: for whom the bell tolls

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DIP, for about $31 million (U.S.), got almost all assets.

Unsecured creditors are out over $70 million.

San Gold closes sale of all assets to creditors

2015-06-23 02:41 ET - News Release

An anonymous director reports

SAN GOLD ANNOUNCES SALE OF ASSETS TO SECURED CREDITORS

San Gold Corp. has closed the sale of all of its assets, subject to certain limited exceptions, to 7097914 Manitoba Ltd. The purchaser is a nominee corporation of San Gold's principal secured creditors for the purpose of acquiring the assets of San Gold. The transaction was completed pursuant to an asset purchase agreement between San Gold and the purchaser, dated effective June 10, 2015. The sale of San Gold's assets was subject to the approval of the Manitoba Court of Queen's Bench, which granted its approval for the sale at a motion hearing on June 19, 2015, and continued today. The purchase price was satisfied by the purchaser assuming all of the liabilities of San Gold owing to its secured creditors, as well as certain other liabilities. Due to the fact that San Gold has sold substantially all of its assets to the purchaser, San Gold does not have the ability to make a proposal to its other creditors. Accordingly, San Gold will become bankrupt upon the expiration of the current stay period in San Gold's proposal proceedings, which expires today, June 22, 2015, at 11:59 p.m. (Central Time). Following such bankruptcy, San Gold anticipates that its shares will be delisted from the TSX Venture Exchange.

The company also advises that all of the officers and directors of the company have resigned, effective today.