San Gold closes $50-million debenture financing
Ticker Symbol: C:SGR

San Gold closes $50-million debenture financing

San Gold Corp (C:SGR)
Shares Issued 335,260,029
Last Close 3/5/2013 $0.265
Wednesday March 06 2013 - News Release

Mr. Dale Ginn reports

SAN GOLD ANNOUNCES CLOSING OF $50 MILLION OFFERING OF CONVERTIBLE DEBENTURES

San Gold Corp. has closed its previously announced bought-deal offering of 8-per-cent, convertible, unsecured, subordinated debentures due March 31, 2018, of the company with a syndicate of underwriters co-led by Scotiabank and CIBC, and including BMO Capital Markets, TD Securities Inc., Dundee Securities Ltd., National Bank Financial Inc. and Mackie Research Capital Corp. At the closing of the offering, the company issued $50-million total principal amount of debentures.

The debentures will trade on the Toronto Stock Exchange under the symbol SGR.DB.

The debentures mature on March 31, 2018, unless earlier redeemed, and bear interest, accruing, calculated and payable semi-annually in arrears on March 31 and Sept. 30 of each year, at a rate of 8 per cent per year. The debentures are convertible at the holder's option into common shares of the company at any time prior to the close of business on the earlier of the maturity date and the business day immediately preceding the date fixed for redemption of the debentures at a conversion price of 50 cents per common share, subject to adjustment in certain circumstances.

The debentures are direct unsecured obligations of the company, ranking subordinate to all liabilities except liabilities, which rank in right of payment equally with or subordinate to the debentures. The debentures will rank pari passu with all subordinate indebtedness issued by the company from time to time, to the extent subordinated on the same terms.

The net proceeds of the offering will be used to finance continued development of the company's mineral properties, in particular the Rice Lake complex, and for general working capital purposes.

The underwriters have been granted an overallotment option to purchase up to an additional $7.5-million total principal amount of debentures, exercisable in whole or in part at any time up to 30 days from the date hereof. This overallotment option has not been exercised as at the time of this press release.

We seek Safe Harbor.

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