VANCOUVER, BRITISH COLUMBIA--(Marketwire -07/13/12)- Sanatana Resources Inc. ("Sanatana" or the "Company") (STA.V), further to its news release of June 25, 2012, is pleased to announce the closing of its non-brokered private placement of 5,315,000 non-flow-through units (the "NFT Units") at $0.25 per NFT Unit and 2,853,333 flow-through units (the "FT Units") at 0.30 per FT Unit for gross proceeds of approximately $2,184,750 (the "Offering"). The Company increased the number of NFT Units previously announced on June 25, 2012 from up to 2,000,000 NFT Units to 5,315,000 NFT Units.
Each NFT Unit consists of one non flow-through common share in the capital of the Company and one-half of one share purchase warrant (each whole warrant, a "NFT Warrant"). Each NFT Warrant will entitle the holder to purchase one additional non-flow-through common share in the capital of the Company (a "NFT Warrant Share") at a price of $0.35 per NFT Warrant Share until July 12, 2013. Each FT Unit consists of one flow-through common share in the capital of the Company (a "FT Share") and one-half of one share purchase warrant (each whole warrant, a "FT Warrant"). Each FT Warrant will entitle the holder to purchase one additional non-flow-through common share in the capital of the Company (a "FT Warrant Share") at a price of $0.40 per FT Warrant Share until July 12, 2013. The Company will renounce, in accordance with the terms of the subscription agreement for the FT Units, an amount equal to the gross proceeds derived from the sale of the FT Units to purchasers in accordance with the provisions of the Income Tax Act (Canada). All securities issued in the closing will be subject to a hold period which expires November 13, 2012.
In connection with the closing, the Company paid an aggregate cash commission of $116,147.50 to certain arm's-length finders (equal to 7% of the proceeds raised by such finders) and issued 429,800 warrants (the "Finder's Warrants") to certain arm's-length finders (equal to 7% of the NFT Units and/or FT Units sold by such finders). Each Finder's Warrants has the same terms as the NFT Warrants in the Offering.
The funds raised from the Offering will be used for mineral exploration and development in the Company's Watershed Property in Ontario and for general working capital and corporate purposes.
Peter Miles, President and CEO commented, "We are pleased to have raised sufficient funds to complete the necessary expenditures to earn a 50% undivided interest in the claims comprising the Watershed property and we expect to exercise the 50% option by December 31, 2012. We thank our shareholders for their overwhelming support for the Offering and the Watershed option and joint venture agreement generally."
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. 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 (STA.V).
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.
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