MANITOBA SAN GOLD has arranged a bought deal private placement worth more than $20 million which will be spent on development of new zones at its Bissett-area mines. The placement consists of 13,350 flow-through shares at a cost of $1.50 each. The deal will close in mid-October subject to regulatory approvals.
San Gold will spend the funds on two projects. First is the accelerated exploration of the new high-grade Hinge zones. This area of mineralization was discovered in early 2008 just 1 km east of the Rice Lake gold mine. Assays from the Hinge No.4 zone have been as high as 80.1 g/t Au over6.1 metres. Second is the initial development of the Cartwright-Gabrielle zones going into 2009.
A detailed analysis of San Gold’s operation and exploration efforts was presented at the Denver Gold forum earlier this month. The entire presentation is available at www.SanGoldCorp.com.