/NOT FOR DISSEMINATION IN THE UNITED STATES OR DISTRIBUTION TO
U.S. NEWS WIRE SERVICES/
Stock Symbol: SGF: TSX
SASKATOON, Dec. 30, 2015 /CNW/ - Shore Gold Inc. (TSX:SGF)
("Shore") is pleased to announce the successful closing today of
Shore's private placement (the "Offering"), on a bought deal basis,
of 11,468,750 Flow-Through Common Shares at a price of $0.23 per Flow-Through Common Share and 3,685,000
Common Shares at a price of $0.19 per
Common Share, for aggregate gross proceeds of $3,337,962.50.
Canaccord Genuity Corp. acted as underwriter (the "Underwriter")
in connection with the Offering.
The proceeds from the sale of the Flow-Through Common Shares
will be used by Shore to incur Canadian exploration expenses
("Qualifying Expenditures") prior to December 31, 2016. Shore will renounce the
Qualifying Expenditures to subscribers of Flow-Through Common
Shares for the fiscal year ended December
31, 2015. The net proceeds of the Common Share
offering will be used by Shore for general working capital
purposes. The Underwriter received a cash commission of 6.0% of the
gross proceeds raised in the Offering as well as warrants to
purchase a number of common shares equal to 6% of the aggregate
number of Flow-Through Common Shares and Common Shares issued
pursuant to the Offering exercisable at any time up to 18 months
following the closing of the Offering at $0.23 per share. In connection with the Offering,
an individual who is both a director and senior officer of the
Company, directly and indirectly, completed a share swap whereby
the individual sold 3,685,000 common shares from his personal
holdings in pre-arranged trades over the facilities of the Toronto
Stock Exchange and used the funds from the sale to subscribe for a
corresponding number of common shares under the Offering. The
Offering is subject to TSX acceptance of requisite regulatory
filings.
Shore is a Canadian based corporation engaged in the
acquisition, exploration and development of mineral properties.
Shares of Shore 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 tax treatment of Flow-Through Shares and
the use of the proceeds of 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.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy the securities in any jurisdiction.
The Common Shares and the Flow-Through Common Shares will not be
and have not been registered under the United States Securities Act
of 1933 and may not be offered or sold in the United States absent registration or an
applicable exemption from the registration
requirements.
SOURCE Shore Gold Inc.