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Message: Sniper Closes Final Tranche of Private Placement
VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 24, 2011) -
NOT FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Sniper Resources Ltd. (TSX VENTURE:SIP) ("Sniper" or "the Company") is pleased to announce that it has closed the second and final tranche of its previously announced private placement by raising gross proceeds of $245,000 through the issuance of 980,000 units at $0.25 per unit, for an aggregate of $847,450 raised in the overall private placement of 3,389,800 units. Each unit is comprised of one common share and one share purchase warrant. Each share purchase warrant entitles the holder to purchase one common share of the Company at an exercise price of $0.50 per share until March 24, 2012.
The Company paid finder's fees totalling $20,000 cash (representing 10% of the proceeds raised by the finders) and 80,000 finder's warrants (representing 10% of the units raised by the finders) in connection with the closing of the final tranche of the private placement. Each finder's warrant entitles the holder to purchase one common share of the Company at $0.28 per share until March 24, 2012.
The proceeds of the private placement will be used to advance the exploration programs on the Company's Guild and Overland pass projects and for general working capital.
All securities issued or issuable under the final tranche of the private placement are subject to a hold period under applicable Canadian securities laws expiring on July 25, 2011, in addition to such other restrictions as may apply under applicable securities laws outside Canada.
About Sniper Resources Ltd.
Sniper Resources Ltd. is engaged in the identification, acquisition and exploration of gold properties in the State of Nevada, USA. The Company's two principal projects, Guild and Overland Pass, are subject to option agreements with Columbus Gold (U.S.) Corporation. Each option agreement provides the Company, through its wholly owned subsidiary Sniper Resources (U.S.) Inc., the right to earn a 51% interest in each of the projects by incurring an aggregate of US$2,000,000 in exploration expenditures on each property by December 31, 2012. The Company can earn an additional 19% interest in each property by completing a positive feasibility study on each property.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the Company's securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration is available. Any public offering of securities in the United States must be made by means of a prospectus that contains detailed information about the Company and its management, as well as financial statements.
Sniper Resources Ltd.
Scott Baxter, Chief Executive Officer
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding future plans and objectives of the Company are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's plans or expectations include market prices, availability of capital and financing, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.
FOR FURTHER INFORMATION PLEASE CONTACT: Scott Baxter
Sniper Resources Ltd.
(604) 263-5614 or Toll free: 1-888-737-2454
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