Sacre-Coeur Minerals Receives Letter of Intent for US $3m Gold Forward Sale Financing and Announces Private Placement
PR-Inside.com: 2014-04-29 05:57:04
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Vancouver, British Columbia (FSCwire) - Sacre-Coeur Minerals, Ltd. (the “Company is pleased to announce that has received and signed a Letter of Intent LOI for a US $3 million financing structured as a gold forward sale. The Company also announces hereby a non-brokered private placement offering to raise gross proceeds of up to CAD $500,000. Under the terms of the private placement, the Company will offer for sale up to 10,000,000 Units (the “Units at CAD $0.05 per Unit. The Company may, in its discretion, increase the size of this offering by up to 20% to a maximum of 12,000,000 Units.
The Letter of Intent for the $3 million gold forward sale was provided by AGR, Inc., an investment group focused on natural resource investments including minerals, agriculture and forestry. Delivery on the forward sale will be from 6% of the Company’s net gold production for aggregate total delivery of 4,286 tr oz of gold against the forward sale. Deliveries as above shall be subject to certain periodic minimum cumulative deliveries, with full aggregate delivery by not later than 31, March 2017. Closing of the financing as specified in the LOI is targeted to occur on or before May 15, 2014. Closing is contingent upon receipt of approval of the Fourth Amended Trust Deed by the Company’s bondholders, as previously announced, and negotiation and execution of definitive agreement(s) between the parties.
With respect to the private placement, each Unit will consist of one Common Share of the Company and one share purchase warrant (the “Warrants, where each Warrant will allow the subscriber to purchase one additional Common Share of the Company for a period of three years from the date of closing. The Warrant exercise price shall be CAD $0.075 per Share. The Company may, in its discretion, pay a cash finder’s fee of up to 7% of the total gross proceeds of the offering. The Units issued upon the closing of the private placement will be subject to a 4-month hold period. The private placement is subject to the acceptance of the TSX Venture Exchange.
Proceeds from the financings will be used to advance the Company’s hard-rock and alluvial mining projects, and for general corporate purposes.
The Company is very pleased with the terms set forth in the LOI and continues to work on similar further financing arrangements with AGR and others for total aggregate financing of approximately $28 million which will be utilized for completion of the Definitive Feasibility Study for development of Phase I of its Million Mountain hard-rock Project, as well as expansion of its alluvial production through implementation of multiple fine gold process plants capable of recovering a high percentage of gravity recoverable gold at <150 micron particle size.
The Company is engaged in the acquisition, exploration, development, and production of properties for gold, metals and diamonds in South America, initially focussing on exploration and production of gold from its properties in Guyana. The Company presently holds 100% interest in approximately 860 sq. km of mineral properties in Guyana, including the Million Mountain Property which hosts an NI 43-101 compliant hard-rock resource of 12,119,285 tonnes grading 1.0 g/t Au Measured, and 2,175,278 tonnes grading 0.9 g/t Au Indicated for a total 451,000 tr oz Au combined. The Company has offices in Vancouver, Canada and Georgetown, Guyana. More information about the Company is available at www.scminerals.com.
The undersigned is a Qualified Person under NI 43-101. All information contained herein has been prepared by or under the supervision of the undersigned.
ON BEHALF OF THE BOARD OF DIRECTORS OF
SACRE-COEUR MINERALS, LTD.
“Gregory B. Sparks”
Gregory B. Sparks, P. Eng.
President & CEO
For further information, contact:
Gregory Sparks, President and CEO
Ryan Carpel, IR Coordinator
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 or “forward-looking information” within the meaning of applicable Canadian securities laws, which we will refer to as “forward-looking information Often, but not always, forward-looking information can be identified by the use of words such as “plans “expects “targets “is expected “budget “scheduled “estimates “forecasts “intends “anticipates” or “believes” or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results “may “could “would “might” or “will” be taken, occur or be achieved. Forward-looking information includes, but is not limited to, statements pertaining to proposed financing, gold production, development activities, commissioning of environmental studies, application for necessary permits for production operations, metallurgical studies, commissioning of a third party feasibility study, arrangement of financing for development, formal production decisions or business combinations.
We can give no assurance that the forward-looking information will prove to be accurate. Forward-looking information by its nature is based on assumptions and involves known and unknown risks, uncertainties and other factors, including those discussed in the Company’s quarterly and annual management discussion and analysis, which are available at www.sedar.com under the Company’s profile, any of which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. The forward-looking information is based on a number of assumptions that management believes are reasonable, including but not limited to assumptions about: the price of gold; the financial condition of the Company; anticipated costs and expenditures; estimated production; mineral resources or reserves and metallurgical recoveries; general business conditions; and the ability to achieve our goals. The forward-looking information is also subject to certain risks, uncertainties and other factors associated with our business, including but not limited to: ability to obtain financing; gold price volatility; risks of not meeting production and cost targets; discrepancies between actual and estimated production; mineral reserves and resources and metallurgical recoveries; mining operational and development risk; litigation risks; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign investment and operating in foreign countries; currency fluctuations; speculative nature of gold exploration; global economic climate; dilution; share price volatility; competition; loss of key employees; additional funding requirements; and defective title to mineral claims or property, as well as those factors discussed in the Company’s quarterly and annual management discussion and analysis. Should underlying assumptions prove incorrect, or should one or more of the risks, uncertainties or other factors materialize, actual results may vary materially from those expressed or implied in the forward-looking information.
Forward-looking information is designed to help you understand management’s current views of our near and longer term prospects, and it may not be appropriate for other purposes. Forward-looking information is based on the reasonable beliefs, estimates and opinions of management at the date the statements are made and is subject to change without notice. These factors should be carefully considered and viewers are cautioned not to place undue reliance on forward-looking information, which speaks only as of the date of this news release. We will not necessarily update this information unless we are required to by applicable securities laws.
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Source: Sacre-Coeur Minerals Ltd. (TSX Venture:SCM) www.scminerals.com/
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