October 15, 2008
San Gold Announces Closing of $20 Million “Bought Deal” Private Placement at $1.50 Per Share
San Gold Corporation (TSX-V: SGR) (the "Company") is pleased to announce that it has closed its private placement offering (the "Offering") of 13,350,000 common shares of the Company issued as "flow-through shares" within the meaning of the Income Tax Act (Canada) (the "Flow-Through Shares") at a price of $1.50 per Flow-Through Share for total gross proceeds to the Company of $20,025,000. Dundee Securities Corporation, Cormark Securities Inc. and National Bank Financial Inc. (the "Underwriters") acted as underwriters for the Offering. The Flow-Through Common Shares are subject to a hold period of four months and a day from the date of issuance in accordance with applicable securities laws and the policies of the TSX Venture Exchange.
In connection with the Offering, the Underwriters received a cash commission equal to 5% of the gross proceeds raised under the Offering.
San Gold is an aggressive gold explorer and developing producer within the Manitoba Rice Lake greenstone belt. San Gold has developed two mines and discovered four gold deposits within the Rice Lake belt over the past three years, most recently the high-grade, near-surface Hinge deposits.
These securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold in the United States or to, or for the benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.
For further information contact Dale Ginn, Chief Executive Officer of San Gold Corporation, at (204) 794-5818 or investor information at 1-800-321-8564 or visit www.sangoldcorp.com.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
For further information contact: Dale Ginn Chief Executive Officer San Gold Corporation (204) 794-5818 1-800-321-8564 www.sangoldcorp.com
SOURCE: San Gold Corporation