|By Marketwired .||
|January 3, 2014 09:00 AM EST||
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 01/03/14 -- SnipGold Corp. (TSX VENTURE: SGG) ("SnipGold" or the "Company") reports that the $300,000 non-brokered private placement announced December 20, 2013, was oversubscribed and has been increased to $350,000. The private placement has closed, subject to TSX Venture Exchange ("TSX-V") final approval. Insider participation in the placement was just over 35% of the proceeds.
The Company has issued 4,375,000 units at a price of $0.08 per unit. Each unit consists of one common share and one non-transferable warrant of the Company. Each warrant will entitle the holder to purchase one common share of the Company at $0.08 per share for a period of 24 months after the closing of the private placement. All shares issued have a hold period which will expire 4 months from date of issue.
Fees and Proceeds
In accordance with TSX Venture Exchange regulations and approval, the Company may pay up to 7% cash finders' fees in connection with the private placement. Funds from this financing will be used to advance earn-in discussions, to continue compilation and interpretive work and for general corporate purposes.
Mr. Zbeetnoff reports, "Although 2013 was a difficult year for junior mineral exploration companies, with SnipGold being no exception, I am pleased that we successfully entered into an Option Agreement with Colorado Resources before year end. This Agreement allows for Colorado to deploy meaningful exploration efforts on the southeastern portion of our Iskut Property, while the remaining 75% of the Property can be advanced by either SnipGold or other earn-in partners. Our exploration team looks forward to the opportunities as well as the challenges ahead in 2014."
SnipGold Corp. is a Canadian junior exploration company focused on the exploration and expansion of gold resources in northwest British Columbia. SnipGold's board and management have significant experience in discovery, exploration and development of gold projects.
On Behalf of the Board of Directors SnipGold Corp.
John Zbeetnoff, Chief Executive Officer
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.