TORONTO, April 17 /CNW/ - Sage Gold Inc. ("SAGE") is pleased to announce
that on April 13, 2006, it closed a non-brokered private placement of
10,990,000 units ("Units") at Cdn $0.10 per Unit (the "Issue Price") for gross
proceeds of $1,099,000 (the "Offering"). Each Unit consists of one common
share ("Common Share") of SAGE and one half of one Common Share purchase
warrant (each whole Common Share purchaser 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 first tranche of a $1.75
million Unit financing ($2,187,500 if the 25% Over-Allotment Option is fully
exercised by SAGE) previously announced on April 6, 2006. SAGE expects the
second tranche to close on or about April 20, 2006.
In connection with the Offering, SAGE also agreed to pay $62,400 in
finders' fees and granted to certain finders compensation options ("Options")
to acquire 384,000 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, Warrants, Options and the Common Shares issuable upon
exercise of the Warrants and Options are subject to a statutory hold period
that expires August 14, 2006.
The proceeds from the Offering will be used by SAGE for exploration on
its properties in Ontario and Nevada and general working capital.
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 northeastern Ontario and
the Dixie Fork, Triple Junction, Pony Spur, Dike, Corridors and Sugarloaf
properties (collectively, the "Nevada Properties") which are situated in
northeastern 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
There are 58,681,881 issued and outstanding common shares.
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.
