|By Marketwired .||
|April 7, 2014 06:14 PM EDT||
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/07/14 -- Santa Fe Metals Corporation (TSX VENTURE:SFM) ("SFM" or the "Company") announces that it has closed the first tranche of a non-brokered private placement of 1,550,000 flow-through ("FT") units at a price of $0.05 each for gross proceeds of $77,500 and 3,660,000 non flow-through ("NFT") units at a price of $0.05 each for gross proceeds of $183,000.
Each FT Unit is comprised of one flow-through common share and one-half of a share purchase warrant. Each NFT unit is comprised of one common share and one share purchase warrant. Each whole share purchase warrant entitles 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. Insiders purchased a total of 2,760,000 NFT units. Finders' fees of 8% cash and share purchase warrants equal to 8% of the number of securities placed were paid on a portion of the private placement.
The Company intends 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 Issuer's Sully project and to use the remaining net proceeds of the private placement for general working capital purposes.
The securities issued in connection with the private placement are subject to a four month statutory hold period from closing.
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