One Step Ahead

[Ignutz]

Shore Gold Inc. completes closing of $27,640,000 equity financing Steinmetz Diamond Group participates
Wednesday September 29, 12:37 pm ET

Stock Symbol: SGF: TSX-VEN
SASKATOON, SK, Sept. 29 /CNW/ - Kenneth E. MacNeill, President and C.E.O. of Shore Gold Inc. ("Shore"), is pleased to announce the completion of a private placement of an aggregate of 12,563,673 units of Shore at a price of $2.20 per unit for gross proceeds to Shore of $27,640,080.60 to subscribers resident in Canada, the United States and overseas. Each unit consists of one common share and one-half of one common share purchase warrant (a "Unit"). Each whole warrant is exercisable into one common share for a period of 12 months from the closing date upon payment by the holder of $2.75 per common share. An aggregate of 11,363,673 Units were offered for sale on a best efforts basis (the "Brokered Offering") by Loewen, Ondaatje, McCutcheon Limited and Canaccord Capital Corporation acting as agents (the "Agents").
Shore paid a cash commission to the Agents equal to 7% of the gross proceeds of the Brokered Offering and issued 795,458 warrants ("Agents' Warrants") equal to 7% of the number of Units sold by the Agents pursuant to the Brokered Offering. Each Agents' Warrant entitles the holder to acquire one Unit at an exercise price of $2.20 for a period of 12 months following the closing date. The 1,200,000 Units which are not part of the Brokered Offering were sold on a private placement basis to Magma Diamond Resources Ltd. (to enable Magma to maintain its 9.4% interest in Shore). 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.

All of the securities will be subject to a 4-month hold period in Canada in accordance with applicable securities laws.

The proceeds of the Offering will be used for the exploration of the Star Diamond project and for general working capital purposes.

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".

This news release shall not constitute an offer to sell or the solicitation of any offer to buy securities in any jurisdiction. The shares and warrants have not been nor will be registered under the United States Securities Act of 1933, and they may not be offered or sold in the United States absent registration or an exemption from registration.


"The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release."


http://www.newswire.ca/en/releases/orgDisplay.cgi?okey=14555

For further information

Kenneth E. MacNeill, President & C.E.O. or George Sanders, Vice President Corporate Development at [phone].