Sage Potash Corp. press release
Sage raises $2.2 million with second tranche of $1.1 million
TSXV - TSX Venture Exchange · Potash · Lithium · Bromine · Boron · Canada
Trading Symbol - TSXV: SGX
TORONTO, April 26 /CNW/ - Sage Gold Inc. ("SAGE") announces that on April 25, 2006, it closed a non-brokered private placement of 11,027,990 units ("Units") at Cdn $0.10 per Unit (the "Issue Price") for gross proceeds of $1,102,799 (the "Offering"), subject to final TSXV approval. Each Unit consists of one common share ("Common Share") of SAGE and one half of one Common Share purchase warrant (each whole Common Share purchase warrant a "Warrant"). Each whole Warrant entitles the holder thereof to acquire one Common Share at an exercise price of $0.15 for the first year following the closing date and $0.20 for the second year following the closing date. This is the second tranche of a 22,017,990 Unit financing for gross proceeds of $2,201,799 previously announced on April 6, 2006. The first tranche closed on April 13, 2006. In connection with both tranches of the financing, SAGE also agreed to pay a total of $116,880 in finders' fees and granted to certain finders compensation options ("Options") to acquire 648,000 Common Shares with each option entitling the holder thereof to purchase one Unit at the Issue Price at any time that is 24 months from the date of closing. The common shares are subject to a statutory hold period of four (4) months from the date of issue of the units. The proceeds from the Offering will be used by SAGE for exploration on its properties in Ontario and Nevada and for general working capital purposes. There are 69,709,871 issued and outstanding common shares, after giving effect to the Offering. SAGE is pleased to announce the following appointments: William Love, Geologist, M.B.A., as Vice-President Business Development; Art Hampson, C.A., as C.F.O; and Michael Skutezky, LL.B., as Corporate Secretary. Nigel Lees, President and C.E.O., stated, "These appointments will greatly strengthen the management team and together with the completion of this financing, SAGE is well positioned to continue its active exploration programs on its properties in Ontario, Quebec and Nevada. In addition, SAGE is pursuing several other potential property acquisitions as well as joint venture opportunities on its existing properties. SAGE's goal is to develop the Company's existing properties and acquire other mineral resources to accelerate the Company's transition from exploration through to production." SAGE is a mineral exploration and development company which has an interest in seven exploration properties in Ontario and Quebec and six exploration properties in Nevada. SAGE's main properties are the Kerrs Gold/Lake Abitibi property ( the "Kerrs Property") which is located in the northern part of the Larder Lake Mining Division in north-eastern Ontario, and the Dixie Fork, Triple Junction, Pony Spur, Dike, Corridors and Sugarloaf properties (collectively, the "Nevada Properties) which are situated in north-eastern Nevada, within Elko County. Technical reports relating to the Kerrs property and the Nevada properties can be obtained from the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com
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This release was prepared by management of the Company who takes full responsibility for its contents. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release. Some statements contained in this release are forward-looking and, therefore, involve uncertainties or risks that could cause actual results to differ materially. Such forward-looking statements include comments regarding mining and milling operations, mineral resource statements and exploration program performance. Factors that could cause actual results to differ materially include metal price volatility, economic and political events affecting metal supply and demand, fluctuations in mineralization grade, geological, technical, mining or processing problems, exploration programs and future results of exploration programs, future profitability and production. The Company disclaims any obligation to update forward-looking statements.