ALBUQUERQUE, New Mexico - June 21, 2012 - Santa Fe Gold Corporation (OTCBB: SFEG) today announced that it has entered into a committed equity financing facility under which it may sell up to $15 million of its registered common stock to Glengrove Small Cap Value, Ltd. over an approximately 24-month period. Santa Fe is not obligated to utilize any portion of the equity facility and remains free to enter into other financing transactions. Santa Fe will determine, at its sole discretion, the timing, dollar amount and floor price per share for any draw under the facility, subject to certain conditions. When and if Santa Fe elects to use the facility, the number and price of shares sold in each draw will be determined by a contractual formula, whereby the Company will issue shares to Glengrove at a pre-negotiated discount to the volume weighted average price of Santa Fe's common stock over a preceding period of trading days.
In connection with the execution of the equity financing facility, Santa Fe will issue to Glengrove 666,666 shares of registered common stock as a commitment fee. The offer and sale of shares by Santa Fe under the equity facility have been registered pursuant to a shelf registration statement declared effective with the Securities and Exchange Commission on December 29, 2009. Santa Fe intends to use the net proceeds from any sale of shares under the facility for working capital and other general corporate purposes.
Dr. W. Pierce Carson, CEO, said, "We are delighted to have entered into this new equity financing facility, which should provide us with access to additional working capital to support our operations, while allowing for control over timing and dilution."
This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of securities in any jurisdiction in which an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
To learn more about Santa Fe Gold, visit www.santafegoldcorp.com
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About Santa Fe Gold:
Santa Fe Gold is a U.S.-based mining and exploration enterprise focused on acquiring and developing gold, silver, copper and industrial mineral properties. Santa Fe controls: (i) the Summit mine and Lordsburg mill in southwestern New Mexico, which began processing operations in 2010; (ii) a substantial land position near the Lordsburg mill, comprising the core of the Lordsburg Mining District; (iii) the Ortiz gold property in north-central New Mexico; (iv) the Black Canyon mica deposit and processing equipment near Phoenix, Arizona; and (v) a deposit of micaceous iron oxide (MIO) in western Arizona. Santa Fe Gold intends to build a portfolio of high-quality, diversified mineral assets with an emphasis on precious metals.
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DISCLAIMER
This publication is an advertisement and/or a company update on behalf of Santa Fe Gold Corporation and may not be construed as investment advice. This is not a solicitation to buy or sell securities and this does not purport to be a complete analysis of the company mentioned. Investing in securities is speculative and carries a high degree of risk. Past performance does not guarantee future results. Readers should consult with their own independent tax, business and financial advisers with respect to any investment, including any contemplated investment in the advertised company. All information contained in this advertisement should be independently verified with the advertised company and by an independent financial analyst. You should independently investigate and fully understand all risks before investing. This email was prepared for and by Santa Fe Gold Corporation staff. The information set forth herein was obtained from sources believed to be reliable, but there no guarantee to its accuracy or completeness. For further information on Santa Fe Gold Corporation, please contact R.J. Bommarito, director of shareholder communications at rjbommarito@santafegoldcorp.com. Current stock price and trading volume information is available from your broker and from online information services such as America Online, Yahoo and Bloomberg. All projections, estimates, compilations of future earnings and/or market share represent the best estimate by management of the advertised company of the expected future growth of Santa Fe Gold Corporation and/or the industry as a whole. While management of Santa Fe Gold Corporation believe all facts and figures are accurate, no assurances can be given that any of the projected figures will be attained. This publication contains forward-looking statements as defined in the Securities Litigation Improvements Act of 1996. The words "believe, expect, estimate and project" and similar expressions define forward-looking statements, which speak only as of the date the statement was made. Santa Fe Gold Corporation undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise. Forward-looking statements are currently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated in, or underlie the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, the company's ability to meet its projected growth, the effects of government regulation, competition and other material risks. |
Cautionary Note Regarding Forward-Looking Statements:
This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable US and Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, variations in the market price of any mineral products the Company may produce or plan to produce, the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, the Company's inability to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, and other risks and uncertainties disclosed in the Company's Annual Report on Form 10-K for the year ended June 30, 2010 and its most recent quarterly reports filed with the United States Securities and Exchange Commission (the "SEC"), and other information released by the Company and filed with the appropriate regulatory agencies. All of the Company's US public disclosure filings may be accessed via www.sec.gov and its Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials.
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