Sanatana Announces Private Placement and Election to Include Additional Mining Claims in the Watershed Property
25 Juillet 2013 - 9:47PM
Marketwired Canada
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES FOR
DISSEMINATION IN THE UNITED STATES
Sanatana Resources Inc. ("Sanatana" or the "Company") (TSX VENTURE:STA) will
proceed with a private placement of up to 12,500,000 Units (the "Units") at the
price of $0.08 per Unit for gross proceeds of up to $1,000,000 (the "Offering").
Each Unit will consist of one common share in the capital of the Company (a
"Share") and one share purchase warrant (a "Warrant"). Each Warrant will entitle
the holder to purchase one Share at a price of $0.12 per Share for a period of
two years from the closing of the Offering.
The Company may pay a finder's fee on the Offering within the maximum amount
permitted by the policies of the TSX Venture Exchange (the "TSX-V"). Closing of
the Offering is subject to a number of conditions, including receipt of all
necessary corporate and regulatory approvals, including the TSX-V. All
securities issued in connection with the Offering will be subject to a statutory
hold period of four months plus a day from the date of issuance in accordance
with applicable securities legislation. The net proceeds from the Units will be
used for general corporate purposes and to fund the costs associated with the
hearing before the Ontario Mining and Lands Commissioner in connection with
Trelawney Mining and Exploration Inc.'s ("Trelawney") application for easements
over the Watershed Property (see the Company's news releases of April 29, 2013
and July 4, 2013).
Peter Miles, Chief Executive Officer of Sanatana stated: "The uncertainty
surrounding Trelawney's application for easements over the Watershed Property
has created a difficult environment for Sanatana to raise funds. Specifically,
the modest sized offering is the lowest price that Sanatana has offered its
securities in a private placement. Sanatana believes that Trelawney's
application does not meet the requirements for the granting of an easement under
the Mining Act (Ontario) and Sanatana is opposing the application
vigorously."(1) With respect to the election to include additional mining claims
in the Watershed Property (as described below), Mr. Miles further stated: "We
are extremely pleased to have made an election to acquire the additional land
package."
Area of Interest
Pursuant to the terms of the Option and Joint Venture Agreement (the "Option and
JV Agreement") between Sanatana and Trelawney Augen Acquisitions Corp. ("TAAC"),
the Watershed Property is protected by an area of interest extending at least
one kilometre from any portion of the Watershed Property (the "AOI") as it
existed as of the date of the Option and JV Agreement. If either party to the
Option and JV Agreement (or its affiliate as defined in the Option and JV
Agreement) stakes or acquires any interest in mineral claims or any other form
of mineral tenure located wholly or partly in the AOI (the "AOI Tenure"), then
such acquiring party must immediately notify the other party of such staking or
acquisition and provide the other party with (i) details of the
acquisition/staking costs associated therewith and (ii) all details in its
possession with respect to the nature of the AOI Tenure and the known
mineralization thereon. As noted above, the AOI is at least one kilometre but
the exact size is confidential pursuant to the terms of the Option and JV
Agreement.
Election to Exercise Area of Interest
Trelawney Mining and Exploration Inc. ("Trelawney"), an affiliate of TAAC,
acquired a 20% undivided legal and beneficial interest in and to unpatented
mining claims 4240522, 4241016 and 4220425 (the "Mining Claims") situated in the
Yeo and Chester townships, which are situated within the AOI. Concurrently, TAAC
took an assignment of Crown Gold Corporation's ("Crown Gold") rights under an
Amendment and Assignment of Mining Claim Acquisition Agreement (the "Acquisition
Agreement"). The 20% undivided legal and beneficial interest in the Mining
Claims is identified as a "carried interest" under the Acquisition Agreement and
is defined to mean that until completion of a positive pre-feasibility study,
all costs and expenses of the exploration programs, preparation and filing of
assessment reports and other obligations relating to the Mining Claims are the
sole and exclusive obligation and liability of Trelawney and Sanatana will not
have any obligation or liability in respect thereof.
Having reviewed the geological information associated with the Mining Claims
along with the Acquisition Agreement, Sanatana has elected to (i) have the
interest in the Mining Claims be included and form part of the Watershed
Property for the benefit of Sanatana and TAAC and (ii) acquire the rights under
the Acquisition Agreement.
Acquisition Costs
The acquisition costs for the interest in the Mining Claims and the assignment
of the Acquisition Agreement totalled $143,317 and the Company has reimbursed
TAAC for such costs as required by the Option and JV Agreement.
About the Company
Sanatana Resources Inc. is a Canadian mineral exploration and development
company focused on its Watershed property in Ontario. Sanatana entered into an
option and joint venture agreement with Trelawney Augen Acquisition Corp.
(formerly Augen Gold Corp.) ("TAAC") which grants Sanatana an option to acquire
up to 51% of the Watershed Property consisting of 46 mining claims totalling
approximately 19,006 acres and located within the townships of Yeo, Chester,
Neveille and Benneweis. As at November 28, 2012, Sanatana exercised its first
option and is the legal and beneficial owner of 50% of the Watershed Property.
Sanatana has until March 23, 2016, to decide whether to exercise its right to
acquire a further 1% in the Watershed Property.
On June 21, 2012 IAMGOLD Corporation completed its acquisition of Trelawney
Mining and Exploration Inc. and became the sole indirect shareholders of TAAC.
With an experienced management team and board of directors, the Company has the
ability required to identify, develop and fund economic mineral properties.
Sanatana is based in Vancouver and is listed on the TSX Venture Exchange (TSX
VENTURE:STA).
SANATANA RESOURCES INC.
Peter Miles, President and Chief Executive Officer
Cautionary Statement Regarding "Forward-Looking" Information
Some of the statements contained in this press release are forward-looking
statements and information within the meaning of applicable securities laws.
Forward-looking statements and information can be identified by the use of words
such as "plans", "expects", "intends", "is expected", "potential", "suggests" or
variations of such words or phrases, or statements that certain actions, events
or results "may", "could", "should", "would", "might" or "will" be taken, occur
or be achieved. Forward-looking statements and information are not historical
facts and are subject to a number of risks and uncertainties beyond Sanatana's
control. Actual results and developments are likely to differ, and may differ
materially, from those expressed or implied by the forward-looking statements
contained in this news release. Accordingly, readers should not place undue
reliance on forward-looking statements. The Company undertakes no obligation to
update publicly or otherwise revise any forward-looking statements, except as
may be required by law.
Neither TSX Venture Exchange nor its Regulations Services Provider (as that term
is defined in policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
(1) Trelawney Augen Acquisition Corp. (a wholly-owned subsidiary of Trelawney)
disagrees with Sanatana's assessment of Trelawney's easement application.
FOR FURTHER INFORMATION PLEASE CONTACT:
Sanatana Resources Inc.
Peter Miles
President and Chief Executive Officer
604-408-6680
investor@sanatanaresources.com
www.sanatanaresources.com
Sanatana Resources (TSXV:STA)
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