/NOT FOR DISEMMINATION IN THE
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Stock Symbol: SGF: TSX
SASKATOON, Dec. 4, 2015 /CNW/ - Shore Gold Inc. (TSX:SGF)
("Shore" or the "Company") is pleased to announce that it has
engaged Canaccord Genuity Corp. (the "Underwriter") to complete a
private placement financing (the "Offering"), on a bought deal
basis, of approximately 9.2 million Flow-Through Common Shares and
3.7 million Common Shares of the Company at an issue price of
C$0.23 per Flow-Through Common Share
and C$0.19 per Common Share for gross
proceeds of approximately C$2.8
million.
The Underwriter will have the option, but not the obligation,
exercisable in whole or in part at any time prior to the closing of
the Offering, to increase the size of the Offering by up to an
additional C$527,563 in Flow-Through
Shares at the Flow-Through issue price and up to an additional
C$175,038 in Common Shares at the
Common Share issue price.
An amount equal to the gross proceeds of the Flow-Through Share
offering will be used by Shore to incur Canadian exploration
expenses ("Qualifying Expenditures") prior to December 31, 2016 for renunciation to subscribers
of Flow-Through Shares effective on December
31, 2015. An amount equal to the net proceeds of the Common
Share offering will be used by Shore for general working capital
purposes.
The Flow-Through Shares and Common Shares will be offered and
sold by way of private placement exemptions in all provinces and
jurisdictions of Canada, other
than Quebec. In connection with the Offering, it is
anticipated that an individual who is both a director and senior
officer of the Company will, directly or indirectly, complete a
share swap whereby the individual will sell up to 3,700,000 common
shares from his personal holdings in pre-arranged trades over the
facilities of the Toronto Stock Exchange and use the funds from the
sale to subscribe for a corresponding number of common shares under
the Offering.
The Offering is subject to certain conditions including, but not
limited to, the receipt of all necessary regulatory approvals,
including the approval of the Toronto Stock Exchange. Closing is
expected on or about December 30,
2015. All securities issued in connection with the Offering
will be subject to a four month hold period. The Underwriters will
receive a cash commission of 6.0% of the gross proceeds raised in
this private placement as well as 6.0% Underwriter warrants as
additional compensation.
Shore is a Canadian based corporation engaged in the
acquisition, exploration and development of mineral properties.
Shares of the Company trade on the TSX Exchange under the trading
symbol "SGF".
Caution Regarding Forward-Looking Statements
This press release contains "forward-looking statements" and/or
"forward-looking information", within the meaning of the United
States Private Securities Litigation Reform Act of 1995 and
applicable Canadian securities legislation. All statements, other
than statements of historical fact, are forward-looking statements.
Generally, forward-looking statements can be identified by the use
of forward-looking terminology such as "plans", "expect", "is
expected", "in order to", "is focused on" (a future event),
"estimates", "intends", "anticipates", "believes" or variations of
such words and phrases or statements that certain actions, events
or results "may", "could", "would", or the negative connotation
thereof. Forward-looking statements included or implied in this
press release include the amount of the proceeds of the Offering,
the anticipated closing date of the Offering, the tax treatment of
Flow-Through Shares, the use of the proceeds of the Offering and
the share swap whereby an individual that is an officer and a
director will sell shares and subscribe for a corresponding number
of shares in the Offering. These forward-looking statements are
based on Shore's current beliefs as well as assumptions made by and
information currently available to Shore. Although management
considers these assumptions to be reasonable based on information
currently available to it, they may prove to be incorrect. By their
very nature, forward-looking statements involve inherent risks and
uncertainties, both general and specific, and risks exist that
predictions, forecasts, projections and other forward-looking
statements will not be achieved. We caution readers not to place
undue reliance on these statements as a number of important factors
could cause the actual results to differ materially from the
beliefs, plans, objectives, expectations, anticipations, estimates
and intentions expressed in such forward-looking statements. These
factors include, but are not limited to, developments in world
diamond markets, changes in diamond valuations, risks relating to
fluctuations in the Canadian dollar and other currencies relative
to the US dollar, changes in exploration, development or mining
plans due to exploration results and changing budget priorities of
Shore or its joint venture partner, the effects of competition in
the markets in which Shore operates, the impact of changes in the
partners or the laws and regulations regulating mining exploration
and development, judicial or regulatory judgments and legal
proceedings, operational and infrastructure risks and tax treatment
of the Flow-Through Shares.
SOURCE Shore Gold Inc.