Sage Closes Private Placement

 @ibtimes
on December 21 2009 3:38 PM

Sage Gold is pleased to announce that it has closed a non-brokered private placement of Cdn $804,000 through the sale of 13,400,000 flow-through units ('FT units') at $0.06 per unit.

MineralFields Group has subscribed to $600,000 of the flow-through private placement financing. Trinity Wood Mining 2009- I Flow-Through Limited Partnership purchased the remaining $204,000. Each unit consists of one flow- through common share plus one purchase warrant, each warrant exercisable for one common share at $0.10 per share during the first 12 months from the Closing Date of the offering and exercisable at $0.12 for 12 months from the first anniversary of the Closing Date.

The total finder's fees paid were comprised of $52,320 in cash, plus 1,072,000 options, equal to 8% of the FT Units sold. The options are exercisable to purchase common share units at a price of $0.06 per unit. Each common share unit consists of one common share in the capital of the Company and one warrant to purchase common shares on the same terms as the Warrants.

If the Company's common shares achieve a closing price of $0.18 or higher for a period of 21 consecutive trading days, the Company may, at any time after the expiry of the hold period, notify the warrant holders that all unexercised warrants will expire in 30 days following the date that the notice is issued.

All securities are subject to a four month hold period which expires on April 19, 2010. This financing is subject to final approval of the TSX Venture Exchange.

The net proceeds of the private placement will be used to fund the Company's exploration programs in Canada.

We are very pleased to be continuing our relationship with MineralFields Group as we further explore our properties in Ontario, said Nigel Lees, President and CEO.

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