Toronto, Ontario CANADA, June 29, 2007 /FSC/ - Sage Gold Inc. (SGX - TSX Venture), is please to announce that it has conditionally completed a non-brokered private placement financing of 8,746,666 flow-through common share units (each unit consisting of one flow-through common share and one half of one share purchase warrant) at $0.12 per unit, for total gross proceeds of $1,049,600. Each whole warrant is exercisable for one common share at an exercise price of $0.18 per share exercisable until 24 months from its date of issue.
The closing of this private placement is subject to approval by the TSX Venture Exchange. The Company will issue a further press release after receiving approval for the offering from the TSX Venture Exchange.
The Company will pay a cash finder's fee equal to 8% of the aggregate funds invested, together with a common share purchase warrant exercisable for 6% of the number of units invested to certain participants in this private placement. In total, the Company will pay $40,928 in cash and issue warrants exercisable for 254,300 common shares in connection with this private placement. Each broker warrant will be exercisable into one common share at $0.12 per share, and will remain exercisable for 12 months from its date of issue. No other fee or commission will be paid by the Corporation in connection with the financing.
All securities issued will have a four month hold period expiring four months and one day after conditional listing approval from the TSX Venture Exchange.
The net proceeds of the private placement will be used to fund the Corporation's exploration programs in Canada, and for other permitted general corporate purposes.
For further information, contact:
Nigel Lees
President and C.E.O.
or
.
Mike O'Brien
Manager/Investor Relations
Phone: (416) 204-3170
Fax: (416) 260-2243
For all Sage Gold Inc. investor relations needs, investors are asked to visit the Sage Gold Inc. IR Hub at http://www.agoracom.com/IR/sagegold where they can post questions and receive answers within the same day, or simply review questions and answers posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to sgx@agoracom.com where they can also request addition to the investor e-mail list to receive all future press releases and updates in real time.
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.
This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended and "Forward-Looking Information" within the meaning of applicable Canadian securities legislation. Some forward-looking statements and forward-looking information 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.
SAGE GOLD INC.
365 Bay Street
Suite 500
Toronto, Ontario
M5H 2V1
Tel: (416) 204-3170
Fax: (416) 260-2243
www.sagegoldinc.com
