Shore receives further 2.75 million financing - Completes purchase of process plant
Friday August 20, 1:31 pm ET
Stock Symbol: TSX-V: SGF
SASKATOON, SK, Aug. 20 /CNW/ - Kenneth E. MacNeill, President and Chief Executive Officer of Shore Gold Inc. ("Shore"), is pleased to report that Magma Diamond Resources Ltd. ("Magma") has exercised its share purchase warrants and acquired an additional 2,500,000 common shares at a price of $1.10 per share for net proceeds of $2,750,000. Shore has used a portion of the proceeds from the warrant exercise to purchase the remaining interest in the modular Dense Media Separation ("DMS") plant, which is currently processing kimberlite as part of the 25,000 tonne bulk sample.
Magma is part of the Steinmetz Diamond Group, one of the world's largest integrated diamond marketing and trading companies with offices in Antwerp, Tel Aviv, Mumbai, Johannesburg, New York and Chicago. The principal of the Steinmetz Group is Mr. Beny Steinmetz, an international investor with extensive holdings in diamonds, natural resources, engineering and real estate. With the exercise of the warrants, Magma now owns 5,000,000 common shares, or 9.41% of the 53,109,936 issued shares.
Shore has purchased the remaining 50 per cent interest in the modular DMS Plant from Bateman Minerals (Pty) Ltd. for $1,692,804. Bateman, a Steinmetz Group company, is one of the world's foremost providers of process and recovery expertise and equipment to the diamond mining industry. Bateman designed and built the Shore DMS plant. Full ownership of the processing facility provides Shore the flexibility to process additional bulk samples from the Star and other Fort a la Corne kimberlites.
Mr. MacNeill states, "We are very pleased with the vote of confidence shown in Shore and the Star diamond project by such an important world diamond player as the Steinmetz Group." Addressing the purchase of the plant, Mr. MacNeill added, "Owning 100% of the DMS plant opens all sorts of opportunities for Shore in the Fort a la Corne field."
Shore is a Canadian-based corporation engaged in the acquisition, exploration and development of mineral properties. Shares of the Company trade on the TSX Venture Exchange under the trading symbol "SGF".
