09.06.2005
Sage Gold Inc. (CNQ listed: symbol SAGE) is pleased to announce that it has signed an option agreement with certain individuals (“the Vendors”) to acquire a 100% interest in a mining claim (“the Property”) contiguous to the Company’s Kerrs Property, in Kerrs Township, Larder Lake Mining Division, Ontario, on the following terms:
On signing, the Company shall issue 67,000 Common Shares, and pay $5,000 in cash to the vendors. During the first year, the Company shall expend $15,000 on the property. On the first anniversary, the Company shall issue the equivalent of $5,000 in Sage Common Shares, and pay $10,000 in cash to the vendors. During the second year, the Company will expend $35,000 on the property. On the second anniversary, the Company shall issue the equivalent of $10,000 in Sage Common Shares, and pay $15,000 in cash to the vendors. During the third year, the Company will expend $70,000 on the property.
The Vendors will retain a net smelter return royalty of 1.5% on gold and a 1.5% gross overriding royalty on diamonds. Both royalties can be purchased by the Company for $300,000 each in cash.
During the past month, Sage has staked and optioned 276 additional claim units contiguous to the Kerrs property, increasing the total claim area by 11,040 acres, for a total of 13,259 acres.
The Company is currently conducting a 2,000 metre diamond drill program on the Kerrs property. The Kerrs gold property host two zones of anomalous gold mineralization; the Jam Lake zone in the northeast section of the property and the Anticlinal Axis zone in the southwest section of the property.
TThe Company also announces that it has closed the final tranche of its previously announced flow-through financing, pursuant to which the Company sold an aggregate of 8,666,667 flow-through shares at a price of $0.075 per share for gross proceeds of $650,000. The Company also sold an additional 335,000 flow-through shares on the same terms for aggregate gross proceeds of $25,125.
In addition, the Company has issued 580,000 units (“Units”) at $0.075 per unit for gross proceeds of $43,500. To date, a total of 7,792,506 Units at a price of $0.075 per Unit have been issued for gross proceeds of $584,438. Each Unit consists of one common share of the Company and one half of one common share purchase warrant. Each whole warrant entitles the holder to purchase an additional common share at a price of $0.10 per common share at any time until September 6, 2007.
The Company now has 33,568,849 issued and outstanding shares.
The Company also announces that it will participate at the Las Vegas Gold Show on September 7 and 8, 2005, and invites shareholders and interested parties to visit the Company’s display.
For further information, contact:
Nigel Lees, President and C.E.O.,
or Bill Love, C.F.O.
Phone: 416-204-3170
Fax: 416-260-2243
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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.