TORONTO, ONTARIO--(Marketwire - March 5, 2010) - Sage Gold Inc. (TSX VENTURE:SGX) ("the Company") is pleased to announce the completion and execution of the definitive option agreement with Gryphon Gold Corporation ('Gryphon Gold'). The agreement details the terms of Sage Gold's option to earn in into an undivided 50% interest in the Borealis Gold Project.
The Borealis Gold Project is described in the February 24, 2010 joint press release disseminated by Sage Gold and Gryphon Gold. Sage has engaged SRK Consulting (U.S) of Denver, Colorado ('SRK') to complete an independent review of Gryphon's Pre-Feasibility Study of September 2009. The Pre-Feasibility Study was prepared in accordance with NI 43-101 and is available on www.sedar.com under Gryphon Gold Corporation. SRK is familiar with the Borealis Project having conducted independent due diligence on the deposit for other third parties.
At its Annual General Meeting on March 31, 2010 the Company will seek approval from shareholders for the consolidation of its common shares (the "Common Shares") whereby one (1) Common Share would be issued for every ten (10) pre-consolidation Common Shares issued and outstanding, or such lower number of Common Shares as may be determined by the directors of the Company and as may be required to obtain approval of the share consolidation from the TSX Venture Exchange as at a record date and effective date to be determined by the directors of the Company.
The Company believes a share consolidation would better align Sage with other near-production and production companies, reflecting its evolution from an exploration company and recent option agreements of the Clavos Property in Timmins and the Borealis Property in Nevada. In the view of management a consolidation of the Company's common shares may attract additional institutional and other investors and facilitate future financings to develop the projects into production. The Company currently has approximately 265 million Common Shares outstanding. If the share consolidation is completed on a one for ten basis, the Company would have 26.5 million Common Shares outstanding, post-consolidation.
The Company is not proposing to conduct a name change in conjunction with the share consolidation. The proposed share consolidation is subject to the approval of regulatory authorities, including the TSX Venture Exchange.
SAGE is a mineral exploration and development company which has primary interests in the Borealis Gold Project in Nevada, the advanced Clavos Gold Project in Timmins and exploration properties in the Beardmore -Geraldton Gold Camp. The main properties in the Beardmore -Geraldton Gold Camp are the Cox Cu-Ni deposit and the Golden Extension on the Jacobus property, the Lynx deposit on the Onaman property and the Paint Lake and Pillars properties.. Technical reports relating to the properties can be obtained from the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com.
This release was prepared by management of the Company who takes full responsibility for its contents.
This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended and "Forward Looking Information" within the meaning of applicable Canadian securities legislation. Some forward looking statements and forward looking information contained in this release are forward-looking and, therefore, involve uncertainties or risks that could cause actual results to differ materially. Such forward-looking statements include comments regarding mining and milling operations, mineral resource statements and exploration program performance. Factors that could cause actual results to differ materially include metal price volatility, economic and political events affecting metal supply and demand, fluctuations in mineralization grade, geological, technical, mining or processing problems, exploration programs and future results of exploration programs, future profitability and production. The Company disclaims any obligation to update forward-looking statements.
Neither 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.