SGGV - .11 x .14
Sterling Group Ventures Inc. (the "Company") (OTCBB: SGGV)(FRANKFURT: GD7) advises that it has arranged a private placement of up to 15,000,000 units at a price of $0.10 per unit. Each unit is comprised of one common share of the Company's capital stock and one non transferrable share purchase warrant. Each warrant is exercisable for the period of one year to purchase an additional common share at a price of $0.15 per share. The total proceeds from the private placement will be up to $1,500,000. An option in the placement is included such that if demand requires it, the Company may issue a further placement up to 5,000,000 units to additional investors under the same terms and conditions. Should the option be exercised, the total proceeds of this placement will increase by up to $500,000.
The proceeds from the private placement will be used to fulfill the immediate requirements of the agreement dated October 18, 2010 with Chenxi County Hongyu Mining Co. and relating to the development of the Gaoping phosphate mine located in Chenxi County, Hunan Province, together with other phosphate resources located in Hunan and for working capital. The agreement was press released to the public on October 21, 2010.
The Company plans to close the private placement in various tranches as funds are received and will advise the public by way of press release upon completion of the total placement.
Including this financing, there will be current warrants outstanding at various exercise prices from $0.15 per share to $1.00 per share which if exercised would raise another $8,493,568.
A 7% finders' fee will be payable relating to this private placement.
ON BEHALF OF THE BOARD OF DIRECTORS
Raoul Tsakok, Chairman & CEO
For further information, please check the Company's SEC filings.
AI
