Sona Resources Corp. (the Company or Sona; TSXV - SYS, Frankfurt-QS7) is pleased to announce that, further to its news release of December 20, 2011, it has closed the first tranche of its non-brokered private placement (the Private Placement) of 500,000 units (the Units) at an offering price of $0.60 per Unit, for gross proceeds of $300,000. Each Unit consists of one common share and one-half of one transferable share purchase warrant (each whole warrant, a Warrant), with each Warrant entitling the holder to purchase, at an exercise price of $0.90, an additional common share of the Company for a period of 24 months following the closing date, provided however, that if, commencing on that date that is 12 months from the closing date, the closing price of the Company's common shares on the TSX Venture Exchange is greater than $1.30 for a period of ten consecutive trading days (the tenth such trading day being the Acceleration Trigger Date), then the expiry date of the Warrants shall be accelerated to such date as is 30 calendar days following the Acceleration Trigger Date.
All securities issued pursuant to the Private Placement will be subject to a four-month hold period expiring on May 1, 2012. The proceeds of the financing will be used for exploration and development work on the Elizabeth Gold Property and the Blackdome Gold Mine, and for working capital requirements.
About Sona Resources Corp.
Since its inception in 1990, Sona has engaged in exploration activities at its mineral properties in Canada and the United States, as well as small-scale gold production at its flagship property, the 100 percent owned Blackdome Gold Mine, in south-central British Columbia, 250 kilometres north of Vancouver. At Blackdome, the indicated mineral resources are estimated at 144,500 tonnes, grading 11.3g Au/t and containing 52,600 ounces of gold; and the inferred resource is estimated at 90,600 tonnes, grading 8.8g Au/t (news release dated May 4, 2010). At its 100 percent owned Elizabeth Gold Deposit Property, 30 kilometres south of the Blackdome Gold Mine, Sona has outlined an inferred gold resource of 522,900 tonnes, grading 12.3g Au/t and containing 206,100 ounces of gold (news release dated June 8, 2009).
Sona aims to bring its permitted Blackdome mill back into production over the next year and a half, at a rate of 200 tonnes per day, with feed from the formerly producing Blackdome Gold Mine and the Elizabeth Gold Deposit Property. A positive Preliminary Economic Assessment by Micon International Ltd. (news release dated May 28, 2010), based on a gold price of $950 per ounce over eight years, has estimated a cash cost of $208 per tonne milled, or $686 per gold ounce recovered.
Sona also holds a 100 percent interest in the Montgolfier Project, located in Quebec, 40 kilometres east of the multimillion-ounce Casa Berardi Mine gold deposit.
This news release contains certain forward-looking statements, and such statements involve risks and uncertainties. The results or events predicted may differ materially from actual results or events. Any forward-looking statement speaks only as of the date of this news release. Except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or any other occurrence.
Neither the 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 more information, visit www.sonaresources.com, or call or e-mail:
Sona Resources Corp.
1166 Alberni St., Suite 802
Vancouver, B.C., Canada V6E 3Z3
Tel: +1 (888) 236-5200
Fax: +1 (604) 684-6678
Victor Webb/Madlene Olson
Marston Webb International
Tel: +1 (212) 684-6601
Fax: +1 (212) 725-4709