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Savary Gold Closes $2.0 Million Financing

(TheNewswire)

Toronto, ON / TheNewswire / December 31, 2018 – Savary Gold Corp. (TSX-V: SCA) has closed a $2 Million private placement financing pursuant to which it has issued 40,000,000 units at a price of $0.05 per unit (“Unit”). Each Unit is comprised of one common share of the Company and one-half of one common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitles the holder thereof to acquire one common share of the Company at an exercise price of $0.05 per common share until December 31, 2021 (the “Offering”)

The proceeds from the financing will be used to fund an exploration program on the Karankasso project, Hounde belt, Burkina Faso and for general corporate purposes. The common shares and the common shares issuable upon the exercise of the Warrants are subject to statutory resale restrictions which will expire on May 1st, 2019.  Closing of the Offering remains subject to the receipt of all regulatory approvals, including final approval of the TSX Venture Exchange.

As a result of the offering, SEMAFO Inc. will maintain its current 15.5% interest in the Company on a non-diluted basis.  

Q4, 2018 Exploration Program

On December 17, 2018, Savary completed an exploration program consisting of 68 drill holes totaling 5,265.5 metres.  In detail, 12 core holes totalling 1,707.5 metres, 15 reverse circulation holes totalling 1,553 metres and 40 air core holes totalling 2,005 metres, were completed. All of the samples have been sent to the lab for analysis. The goals of this short program were to expand resources, follow-up on new gold-bearing zones, test higher priority gold-in-auger anomalies and to continue to de-risk the project through the collection of a more complete suite of metallurgical samples of the principle zones. Assay results are expected in early 2019.

About Savary Gold

Savary is a Canadian exploration company focused on exploring and developing (its ~74.6% owned) Karankasso Gold Project in Burkina Faso. The Project is located within the Houndé Greenstone Belt, which hosts Semafo’s Mana mine, Roxgold’s Yaramoko Mine and Endeavor’s Houndé Mine. The Project contains an Inferred mineral resource estimate* of 12.3 million tonnes (Mt) grading 2.03 g/t gold for 805,000 ounces. For additional information please visit our website at www.savarygold.com.

Don Dudek, P.Geo., President and CEO of the Company and a qualified person under National Instrument 43-101, has reviewed and approved the scientific and technical information in this press release.

* Open pit constrained and underground Mineral resource estimate presented in Savary news release dated November 2, 2017

SAVARY GOLD CORP.

On behalf of the Board

“Don Dudek”

President & Chief Executive Officer

Cautionary Notes

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release may contain forward-looking statements.  These statements include statements regarding the proposed use of proceeds and the receipt of all required approvals. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statements or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations.  We do not assume any obligation to update any forward-looking statements, except as required by applicable laws.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States.  The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons (as defined in Regulation S under the 1933 Act) absent such registration or an applicable exemption from such registration requirements.

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Copyright (c) 2018 TheNewswire - All rights reserved.

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