Sage Gold announces $1M FT financing




pcNewsWireSage Gold Inc. (TSX-V: SGX) intends to complete a non-brokered private placement of 4.2 million Flow-Through common shares for gross proceeds of approximately $1.0 million.

Net proceeds will be used to incur Canadian Exploration Expenses (CEE) on its Clavos and Onaman properties.

News Release

SAGE GOLD ANNOUNCES PRIVATE PLACEMENT OF FLOW-THROUGH SHARES

Sage Gold Inc. (“Sage Gold” or the “Corporation”) (TSX.V: SGX) is pleased to announce that it intends to complete a non-brokered private placement (the “Offering”), subject to regulatory approval. The Offering will consist of the sale of 4.2 million common shares of the Corporation, on a Flow-Through share basis (“FT shares”) for gross proceeds of approximately $1.0 million. Eligible finders may receive in cash of up to 7% and compensation share purchase warrants of up to 7% of the Offering. Each share purchase warrant entitles the holder to purchase its holder to purchase one common share at an exercise price of $0.30 per share for a period of 36 months following the closing date, whereupon the warrants will expire.

The Corporation may at its discretion sell additional FT shares to raise additional proceeds of up to twenty-five per cent (25%) of the Offering.

Securities issued pursuant to the Offering shall be subject to a four-month hold period commencing on the Closing Date under applicable Canadian securities laws. The Corporation intends to use the net proceeds from the Offering to incur Canadian Exploration Expenses (CEE) on its Clavos and Onaman properties.

The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange and the securities regulatory authorities.

About Sage Gold

The Company is a mineral exploration and development company which has primary interests in near-term production and exploration properties in Ontario. Its main properties are the 100% Clavos Gold property (“Clavos Project”) in Timmins and the 100% owned Onaman property including the Lynx copper, gold, silver property and other exploration properties in the Beardmore-Geraldton Gold Camp.
Sage Gold currently plans to complete a reserve estimate and a prefeasibility study regarding the Clavos Project. In the event that a production decision is made that is not based on a feasibility study of mineral reserves demonstrating economic and technical viability prepared in accordance with National Instrument 43-101, readers are cautioned that there is increased uncertainty and higher risk of economic and technical failure associated with such production decisions.

Technical reports and information relating to the properties can be obtained from the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com and www.sagegoldinc.com.

Contact Information: Nigel Lees, President and CEO
416-204-3170
nlees@sagegoldinc.com
www.sagegoldinc.com

CAUTIONARY STATEMENT
Neither the 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.