Sage Closes Final Tranche of Private PlacementSage Closes Final Tranche of Private Placement
TORONTO, ONTARIO, Oct 26, 2010 (Marketwire via COMTEX News Network) --
Sage Gold Inc. (TSX VENTURE:SGX) (the "Company") announces the closing of the last tranche of a non- brokered private placement of 4,416,666 units at Cdn
.18 per unit, each unit consisting of one (1) common share plus one-half (1/2) common share purchase warrant for gross proceeds of Cdn $795,000.
Each whole common share purchase warrant shall entitle the holder to purchase one share at the exercise price of
.28 for a term of two (2) years from the closing date of the offering. If the Company's shares trade at or above
.40 per share for 21 consecutive trading days the Company 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 Company, and thereafter repurchase any unexercised Warrants at
.001 per underlying common share.
The Company may pay finder fees of up to 8% cash plus options to purchase units which are equal to 8% of the number of units sold by the finders. The warrants shall expire 24 months after the closing of the offering.
This closing completes the non flow-through private placement totalling $1,520,000 representing 8,444,444 units at
.18 per unit.
All securities issued in connection with this financing will be subject to a four-month hold period from the closing date.
The net proceeds of the offering will be used for the exploration and development of the Clavos mine near Timmins, Ontario and the exploration of the Company's properties in the Beardmore - Geraldton area of NW Ontario and for other general corporate purposes.