VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 7, 2015) - Saturn Minerals Inc. (TSX VENTURE:SMI)(FRANKFURT:SMK) ("Saturn" or the "Company") is pleased to announce that it has completed the second and final tranche for 340,000 units in connection with a Private Placement previously announced on March 23, 2015, of up to 4,500,000 flow-through units (the "FT Units") at a price of $0.18 per FT Unit. The Company previously closed 3,200,000 units, announced on April 2, 2015, in connection with the Private Placement.
Each FT Unit consists of one flow-through common share (the "FT Shares") and one-half of a non flow-through share purchase warrant (the "NFT Warrants"). Each whole NFT Warrant will entitle the holder to purchase one additional non flow-through common share, exercisable at a price of $0.30 per share for a period of 18 months from the date of issue of the NFT Warrant. The FT Shares will entitle the holder to receive the tax benefits applicable to flow-through shares, in accordance with provisions of the Income Tax Act (Canada).
The NFT Warrants are subject to an accelerated expiry if, at any time after an initial 4 month hold period expires, the closing price of Saturn's common shares on the TSX Venture Exchange (the "TSXV") exceeds $0.30 for any 20 consecutive trading days, in which event the holder will be given notice that the Warrants will expire 30 days following the date of such notice. The NFT Warrants may be exercised by the holder during the 30-day period between the notice and the expiration of the Warrants.
Proceeds from the Private Placement will be used for the drilling of Saturn's first exploratory oil well in the northern Williston Basin. The drill prospect is a closed fault bounded roll over structure that is 480 acres minimum in area on the Bannock Creek property and has the potential to contain up to 38 million barrels in place of resource from three targeted reservoirs (see Saturn News Release dated February 10, 2015).Under the current Private Placement, current Insiders purchased 250,000 Units which, assuming exercise of Warrants, results in 375,000 shares being issued to such Insiders, representing 0.3% of the outstanding shares of the Company.
NON FLOW-THROUGH PRIVATE PLACEMENT
The Company also announces that it will undertake a non-brokered Private Placement of up to 2,500,000 units (the "Units") at a price of $0.18 per Unit. Each Unit consists of one common share (the "Shares") and one-half of a share purchase warrant (the "Warrants"). Each whole Warrant will entitle the holder to purchase one additional common share, exercisable at a price of $0.30 per share for a period of 18 months from the date of issue of the Warrant.
The Warrants are subject to an accelerated expiry if, at any time after an initial 4 month hold period expires, the closing price of Saturn's common shares on the TSX Venture Exchange (the "TSXV") exceeds $0.30 for any 20 consecutive trading days, in which event the holder will be given notice that the Warrants will expire 30 days following the date of such notice. The Warrants may be exercised by the holder during the 30-day period between the notice and the expiration of the Warrants.
Finder's fees to third parties may be payable in accordance with the policies of the TSXV. Proceeds from the Shares will be applied to Saturn's general working capital.
All securities mentioned above will be subject to a four-month hold period and the approval of the TSXV. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities.
GRANT OF OPTIONS
The Company also announces that pursuant to the Company's Stock Option Plan it has granted 2,000,000 stock options at a price of $0.20 per common share to directors and consultants of the Company. As per the Company's Stock Option Plan, the options granted are exercisable until May 7, 2020 and vest over a period of 18 months from the date of grant.
About Saturn Minerals Inc.
Saturn Minerals Inc. (TSX VENTURE:SMI)(FRANKFURT:SMK) is a junior Canadian energy company advancing a portfolio of oil and coal properties in Saskatchewan and Manitoba. The Company owns 376,800 acres of exclusive oil & gas rights in Saskatchewan and is advancing a number of oil exploration projects. Saturn has also made three shallow bituminous coal discoveries since 2009 with coal seams ranging in continuous vertical thickness from 9 to 89 meters. Saturn has a strategic ownership in Inowending Exploration & Development Corp., a First Nations owned exploration and development company co-founded by Saturn with a consortium of Saskatchewan First Nations active in Canada's prairie provinces.
On Behalf of the Board of Directors
SATURN MINERALS INC.
Stan Szary, Chief Executive Officer
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