|By Marketwired .||
|March 20, 2014 05:46 PM EDT||
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 03/20/14 -- Santa Fe Metals Corporation (TSX VENTURE:SFM) ("SFM" or the "Company") announces that it is proceeding with its previously announced up to $1 million private placement financing (the "Private Placement").
As disclosed in the Company's news release of January 27, 2014, the Private Placement will be comprised of up to 10,000,000 flow-through ("FT") and 10,000,000 non flow-through ("NFT") units at a price of $0.05 per unit (the "Unit") for gross proceeds of up to $1,000,000. Each FT Unit will be comprised of one flow-through common share and one-half of a share purchase warrant. Each NFT Unit will be comprised of one common share and one share purchase warrant. Each whole share purchase warrant will entitle the holder to purchase one common share of the Company at the price of $0.10 for a period of two years from the date of closing of the Private Placement.
As disclosed in the Company's news release of September 25, 2013, the Company entered into an option agreement with Gravitas Metals Corp. ("Gravitas") to acquire all of the issued and outstanding shares of Gravitas (the "Gravitas Option"), a private British Columbia company, which holds an option to earn an 80% interest in the Sully group of claims located near Fort Steele, British Columbia (the "Sully Project"). In the January 27, 2014 news release announcing the Private Placement, the Issuer indicated that it intended to use the proceeds from the flow-through common shares to incur Canadian exploration expenses as defined in the Income Tax Act (Canada) to advance drilling and other exploration activities on the Sully Project and to use the remaining net proceeds of the Private Placement for general working capital purposes. To date the Company has not exercised the Gravitas Option.
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.
Santa Fe Metals Corporation
Scott E. Broughton, P.Eng.
President and CEO