Strongbow Closes $3.6 Million Private Placement and Welcomes New Shareholder Sun Valley Gold
16 November 2010 - 5:10AM
Marketwired Canada
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UNITED STATES
Strongbow Exploration Inc. (TSX VENTURE:SBW) is pleased to announce the closing
of a brokered private placement through Haywood Securities Inc. of 15,000,000
common shares of Strongbow at a price of CDN$0.24 per common share for gross
proceeds of CDN$3,600,000. Thirteen million (13,000,000) common shares of the
private placement were purchased by Sun Valley Gold Master Fund, Ltd.,
representing approximately 16% of the issued and outstanding common shares of
Strongbow. Net proceeds from the private placement financing will be used to
fund exploration activities at Strongbow's Midway gold project in South Carolina
as well as general working capital.
"Strongbow welcomes Sun Valley Gold as its newest and largest shareholder. We
believe Sun Valley will be a strong partner to Strongbow as they have
significant experience investing in South Carolina and their investment in
Strongbow is an endorsement of the Company's exploration strategy at the Midway
gold project," commented Ken Armstrong, Strongbow's President and Chief
Executive Officer.
The Company has paid Haywood a cash fee equal to 5% of the gross proceeds from
the sale of the common shares and has issued to Haywood 750,000 Agent's
warrants. Each Agent warrant is exercisable to acquire one common share of the
Company at $0.35 per share exercisable until November 15, 2011. All of the
common shares, including any common shares issuable on the exercise of the
Agent's warrants are subject to a four month hold period expiring March 16,
2011.
About Strongbow Exploration Inc.
Strongbow is a technically driven exploration company exploring for gold
deposits within the Carolina Slate Belt of the southeastern United States, as
well as magmatic nickel-copper sulphide deposits along the Snowbird Tectonic
Zone in central Canada. Strongbow's management and board of directors have a
proven track record of exploration success and a demonstrated ability to raise
the capital required to finance its exploration programs. Strongbow's 2010
exploration programs are conducted under the supervision of David Gale,
P.Geo.(BC), Vice-President of Exploration for Strongbow and a qualified person
under NI 43-101.
STRONGBOW EXPLORATION INC.
Kenneth A. Armstrong, President and CEO
Strongbow Exploration (TSXV:SBW)
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