TORONTO, ONTARIO--(Marketwired - Nov. 14, 2017) - Sage Gold Inc. ("Sage Gold" or the "Company") (TSX VENTURE:SGX) is pleased to announce that further to its news releases dated October 20, 2017, October 23, 2017 and October 31, 2017, the Company has closed the third tranche (the "Third Tranche") of its treasury offering of flow-through common share units of the Company (the "Units") at the price $0.22 per Unit (the "Offering"). The Third Tranche consisted of the sale of 802,300 Units for gross proceeds of $176,506. Each Unit is comprised of one (1) common share of the Company (a "Common Share"), issued on a flow-through basis ("Flow-Through Share"), and 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 at an exercise price of $0.32 for a period of 24 months following the closing of the Third Tranche.
Securities issued pursuant to the Third Tranche shall be subject to a four-month plus one day hold period commencing on the day of the closing of the Third Tranche under applicable Canadian securities laws. In connection with the closing of the Third Tranche, finders' fees of $4,312 were paid and 12,250 compensation warrants ("Finder Warrants") were issued to certain eligible finders. Each Finder Warrant entitles the holder to acquire one Common Share at an exercise price of $0.32 per Common Share for a period of 24 month following the closing of the Third Tranche. To date, the Offering consists of the sale of 5,128,800 Units in the aggregate.
Following the completion of the Third tranche the number of common shares outstanding is 82,529,430. The Company intends to use the net proceeds from the Offering to incur Canadian Exploration Expenses ("CEE") on its properties.
In connection with the closing of the Third Tranche, Nigel Lees, President, Chief Executive Officer and a Director of the Company has acquired 230,000 Units in the aggregate. This issuance of Units to Mr. Lees is considered a "related party transaction" as such term is defined under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is relying on exemptions from the formal valuation and minority shareholder approval requirements provided under MI 61-101 on the basis that participation in the Third Tranche by the related party does not exceed 25% of the fair market value of the Company's market capitalization.
Options granted
The Company also announces that it has granted to its CFO 500,000 incentive stock options with an exercise price of $0.25 per Common Share, exercisable for a period of five years. The options granted vest immediately upon grant. The options are granted pursuant to the Company's incentive stock option plan and are subject to the terms of conditions set out therein.