Sage Gold Inc. (TSX VENTURE:SGX) announces that it has completed the third instalment as part of an Option Agreement between Sage Gold Inc. and St Andrew Goldfields Ltd. (TSX:SAS) dated February 8, 2010 (the 'Option Agreement') by having exceeded $1,500,000 of Exploration Expenditure requirement by having spent $3,000,000 subject to SAS verification. Sage has paid the sum of $35,000 in cash and has issued 294,118 common shares of the Company at a share price of $0.119 per share, equal to $35,000 in market value due under the Option Agreement. The shares issued have a four month hold period which expires on June 21, 2012.
Sage has the right to earn a 60% interest in the Clavos Mine under a four instalment property acquisition pursuant to the Option Agreement. Sage can complete the earn in of its 60% interest by paying the additional sum of $40,000 in cash and by issuing common shares with a market value of $40,000 at the time of issuance (and subject to TSX Venture Exchange approval) on or before the third anniversary (February 2013) of the Option Agreement. In addition to the expenditure requirements and the cash and share payments, Sage is required to replace the $250,000 closure bond on the property.
The Company also confirms that on January 9, 2012, the Board of Directors of Sage granted to directors, officers, employees and consultants 3,094,000 options to purchase common shares of the Company at an exercise price of $0.15 for a term of five (5) years from date of grant vesting 1/3 on the date of grant, 1/3 on the first anniversary date thereof and 1/3 on the second anniversary date thereof as previously announced in a press release dated January 3, 2012.
SAGE 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 Clavos Gold deposit in Timmins and the Lynx deposit and other exploration properties in the Beardmore-Geraldton Gold Camp. 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.
This release was prepared by management of the Company who takes full responsibility for its contents.
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.
Neither 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.
FOR FURTHER INFORMATION PLEASE CONTACT:Sage Gold Inc.Nigel LeesPresident and C.E.O.416-204-3170Fax: 416-260-2243(FAX)
Sage Gold Inc.Mike O'BrienManager/Investor Relations416-204-3170Fax: 416-260-2243(FAX)www.sagegoldinc.com
Source: Sage Gold Inc.