Toronto, Canada – January 30, 2014 – Savary Gold Corp. (TSX-V: SCA) has launched a non-brokered private placement financing for total gross proceeds of up to $1,400,000 at a price of $0.05 per Unit (the “Offering”). Each Unit will be comprised of one common share of the Company and one-half of one common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant will entitle the holder thereof to acquire one common share of the Company at an exercise price of $0.07 per common share for a period of 36 months following the closing date of the Offering.
The proceeds from the financing will be used to fund an approximately $1.1 million drill program on the Houndé South project in Burkina Faso and for general corporate purposes. A drill program has been designed to follow-up on several high priority gold targets highlighted by a 1,200 m by 350 m, deeply weathered, felsic intrusion hosted gold zone that returned multiple intercepts of 10.14 g/t Au over 10.0 metres, 5.77 g/t Au over 8.0 metres and 1.82 g/t Au over 7.0 metres in two holes that clipped part the interpreted northern edge of the intrusion (see January 20, 2014 Savary News Release).
All securities issued by Savary will be subject to a hold period of four months and one day. Closing of the Offering is expected to occur on or before February 20, 2014 and is subject to a number of conditions, including, without limitation, execution of definitive agreements and receipt of all regulatory approvals, including approval of the TSX Venture Exchange.
In connection with the Offering, Savary may pay cash finders fees up to 6% of the proceeds to eligible finders in accordance with the policies of the TSX Venture.
About Savary Gold
Savary Gold is a Canadian exploration company focused on exploring the Houndé South Gold Property in Burkina Faso. The property is in the Birimian age Houndé Greenstone Belt, which hosts Semafo’s Mana mine and additional gold deposits that are presently subject to extensive exploration efforts (including Endeavour Mining’s Houndé Project and Sarama’s South Houndé Project, which is adjacent to Savary Gold’s property). For additional information please visit our website at www.savarygold.com and follow us on Facebook and Twitter: @SavaryGold.
Don Dudek, P.Geo., President and CEO of the Company and a qualified person under National Instrument 43-101, has reviewed and approved the scientific and technical information in this press release.
This news release may contain forward-looking statements. These statements include statements regarding the proposed use of proceeds. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statements or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not assume any obligation to update any forward-looking statements, except as required by applicable laws.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons (as defined in Regulation S under the 1933 Act) absent such registration or an applicable exemption from such registration requirements.