Sanatana Closes Private Placement for Gross Proceeds of $1,984,455
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 9, 2012) - Sanatana Resources Inc. ("Sanatana" or the "Company") (TSX VENTURE:STA) announces that further to its news releases of October 24, 2012 and November 6, 2012, the Company has closed the non-brokered private placement (the "Private Placement") of 6,013,500 flow-through units (the "FT Units") at $0.33 per FT Unit for gross proceeds of $1,984,455.
Each FT Unit consists of one flow-through common share in the capital of the Company (a "FT Share") and one-half of one share purchase warrant (each whole warrant, a "FT Warrant"). Each FT Warrant will entitle the holder to purchase one additional non-flow-through common share in the capital of the Company (a "FT Warrant Share") at a price of $0.40 per FT Warrant Share until November 9, 2014.
In connection with the closing, the Company paid an aggregate cash commission of $103,158 to certain arm's-length finders, representing 6% of the gross proceeds raised on the sale of the FT Units placed by such finders.
All securities issued in connection with the Private Placement are subject to a statutory hold period expiring on March 10, 2013. The proceeds from the Private Placement will be used for mineral exploration and development for the Company's Watershed Property in Ontario. The Company will renounce an amount equal to the gross proceeds derived from the sale of the FT Shares to purchasers in accordance with the provisions of the Income Tax Act (Canada).
About the Company
Sanatana Resources Inc. is a Canadian mineral exploration and development company focused on its Watershed property in Ontario. Sanatana entered into an option and joint venture agreement with Trelawney Augen Acquisition Corp. (formerly Augen Gold Corp.) ("TAAC") which grants Sanatana an option to acquire up to 51% of the Watershed property. On June 21, 2012 IAMGOLD Corporation completed its acquisition of Trelawney Mining and Exploration Inc. and became the sole indirect shareholders of TAAC. With an experienced management team and board of directors, the Company has the ability required to identify, develop and fund economic mineral properties. Sanatana is based in Vancouver and is listed on the TSX Venture Exchange (TSX VENTURE:STA).
SANATANA RESOURCES INC.
Peter Miles, President and Chief Executive Officer
FOR FURTHER INFORMATION PLEASE CONTACT:
Sanatana Resources Inc.
Mr. Peter Miles
President and Chief Executive Officer
604-408-6680 or Toll Free: 1.877.881.6680