11.18.2004
Sahelian Goldfields Inc. (CNQ listed: symbol SAGE) has retained First Associates Investments Inc. as its agent for a private placement of up to 160,000,000 units (“Units”) at a price of $0.0125 per Unit for a total of $2 million.
Each Unit consists of one (1) common share and one (1) common share purchase warrant exercisable at a price of $0.05 per common share up to March 29, 2009. The agent will receive a cash commission equal to 10% of the proceeds raised from the sale of Units and options entitling it to purchase a number of Units equal to 10% of the Units sold. The agent will also be granted, an over-allotment option to purchase up to 15% of the number of Units sold. A planned private placement announced earlier this year had been deferred pending the completion of certain property acquisitions by Sahelian, which were announced recently. Closing of the private placement is expected to take place on or about December 10, 2004.
The Company recently announced option agreements to acquire interests in six gold exploration properties in Nevada; Pony Spur, Dike, Triple Junction and Dixie Fork in the southern Carlin Trend and Corridors and Sugarloaf in the Midas Trend. Exploration, consisting of soil geochemistry, gravity and induced polarization geophysical surveys, has already commenced. In addition, 17 lode claims (340 acres) have been staked contiguous to the Corridors property. Subject to financing and permitting, a drilling program of approximately 8,000 metres is planned to commence on the Nevada properties in the first quarter of 2005.
Nigel Lees stated: “With the proceeds of this financing, we will be well positioned financially to conduct an aggressive exploration program, including an extensive drill program on the Company’s properties as well as continue to pursue new acquisitions.” The Company is completing a geochemical soil analysis program on its Kerrs property located in the Lake Abitibi area of northern Ontario. Several drill targets have been identified near the 1,000 metre long favourable contact zone in the Jam Lake area where 2
historical drilling had encountered encouraging gold values such as hole no. K87-16 intercepting 2.71 g Au/t over 9.44 metres. A 2,500 metre drilling program is planned for the first quarter of 2005 subject to permitting and financing.
The Company also wishes to announce that it will be calling a meeting of its shareholders on January 14, 2005, and in order to comply with the policies of the CNQ, to approve a consolidation of its shares on the basis of one new common share for every 25 common shares presently held. The common shares to be issued pursuant to the private placement referred to above will also be subject to the proposed share consolidation.
Contemporaneously, the Company plans to seek shareholder approval to change its name to SAGE Gold Inc.
Sahelian is a precious metals exploration and development company with properties in Ontario, Quebec, and Nevada. The Company is building an exploration and development company with its existing properties and through the acquisition of additional gold and silver properties. As at September 30, 2004, the Company had approximately $1 million in cash and a total of 419,375,215 common shares outstanding.
For further information, contact: Nigel Lees, President and C.E.O., or Allan Ibbitson, C.F.O.
Phone: 416-204-3170 Fax: 416-260-2243
- - - - - - - - - - - - - - - -
This release was prepared by management of the Company who takes full responsibility for its contents. The Canadian Trading and Quotation System Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
Some statements 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.