Sutter Gold Mining Inc (SGM)

[NYBob]

Sutter Gold Mining Inc. Signs US $8 Million Increase and Repayment
Extension to Secured Short-Term Credit Facility -


May 23, 2013

http://www.suttergoldmining.com/s/NewsReleases.asp?ReportID=585450&_Type=News-Releases&_Title=Sutter-Gold-Mining-Inc.-Signs-US-8-Million-Increase-and-Repayment-Extension...

Sutter Gold Mining Inc. -
Signs US $8 Million Increase and Repayment Extension to Secured
Short-Term Credit Facility
Vancouver, British Columbia (May 23, 2013) -

Sutter Gold Mining Inc.
(SGM:TSX-V) (SGMNF:OTCQX) ("Sutter" or the "Company") announced
today that it has closed on an agreement with
RMB Australia Holdings Ltd.
("RMB") pursuant to which RMB has agreed to increase the existing
secured, short term debt facility of US$12 million (the "Original
Facility") by an additional US$8 million (the "Extended Facility",
together with the Original Facility, the "Facility") (see press
release dated October 18, 2012).

The Extended Facility will be used for the completion of the
construction of
the Lincoln Mine Project -
(the "Project") near Sutter Creek, California, and for agreed
general corporate purposes.
With this Extended Facility, RMB has now made an aggregate of US$20
million available to the Company, of which US$12 million has been
drawn by the Company.
In addition, the Facility's due date has been extended from
June 30, 2013 to June 30, 2014 and now bears interest at the rate
of LIBOR plus 15% per annum.

The Extended Facility is subject to an arrangement fee of 5% of the
Extended Facility, which will be paid to RMB Resources Inc. or to
RMB on the first draw down on the Extended Facility.
The security granted by the Company is consistent with that under
the existing prepaid gold facility with RMB and includes a first
ranking charge over the Project.

A Special Committee of the Board of Directors of the Company, comprised solely of independent directors of the Company, was established to review, consider and make recommendations to the Board of Directors of the Company with respect to the Extended Facility. The Special Committee determined that the terms of the Extended Facility are reasonable in the circumstances of the Company and recommended that the Board of Directors of the Company approve the Extended Facility.

The Extended Facility is a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") and the policies of the Exchange as a result of the fact that RMB is an affiliate of an entity that owns approximately 48.1% of the issued and outstanding shares of the Company. The Company has relied on the exemptions from the formal valuation and minority shareholder requirements of MI 61-101 contained in sections 5.5(b) and 5.7(e) of MI 61-101 in connection with the Extended Facility. The Company did not file a material change report more than 21 days before the expected closing of the Extended Facility as details of the Extended Facility were not settled until shortly before the closing of the Extended Facility.

About Sutter
Sutter is a growth-oriented exploration and development company
preparing to become a North American gold producer.
The Company has two projects: the Lincoln Project located in Amador
County, California and the Santa Theresa Project located in the
Northern Baja region of Mexico.
Currently, the Company's primary focus is the evaluation and
development of the Lincoln Project, beginning with the shallow
portion of the Lincoln-Comet ore zone of the Lincoln Project,
located on the California Mother Lode Gold Belt.
The Lincoln-Comet and Keystone zones have a NI 43-101 compliant
Indicated Resource estimate (completed in February 2008) of 612,400
tonnes (673,600 tons) grading 11.3 g/t Au (0.33 oz/ton) containing
223,000 ounces of gold and Inferred Resources of 2,161,700 tonnes
(2,377,900 tons) grading 6.6 g/t Au (0.19 oz/ton)
containing 458,900 ounces of gold.

Sutter currently controls approximately 4.6 miles of the Mother Lode
of Amador County, with 90% of the property still unexplored.
Potential exists both at depth and along strike of the known
mineralized zones on both the footwall and hanging wall.
The 120-mile long Mother Lode Gold Belt produced over 13 million
ounces of gold historically with 7.9 million ounces originating from
the 10-mile long segment between Jackson and Plymouth where the
Lincoln Project is strategically located. Properties under the
Company's control include seven historic mines with significant
historic gold production totaling over 3.5 million ounces or 27% of
the historic gold production from the Mother Lode.
Historic mines located north and south of the Lincoln Project in the
Jackson to Plymouth segment of the Mother Lode success fully mined
gold to depths of 4,500 and 6,300 feet, respectively.

In Mexico, Sutter holds the rights to the geologically similar,
high-grade El Alamo district of northern Baja, where historic mining
to the water table produced mined grades of 30 to 60 g/t gold.
Initial exploration with its joint-venture partner, Premier Gold,
has demonstrated the extension of high-grade veins.

ON BEHALF OF THE BOARD OF DIRECTORS:

Dr. Leanne M. Baker, President, CEO & Director
Sutter Gold Mining Inc.

For further information, please contact:

Robert Hutmacher, Chief Financial Officer at 303 238 1438 ext. 22
Email: [e-mail]
Website: www.suttergoldmining.com

Forward-Looking Statements
This news release contains "forward-looking information" under
Canadian securities law----the Company's revenues and capital
expenditures and estimated production.

Forward-looking information is subject to a variety of known and
unknown risks, uncertainties ---- forth above, investors should not
place undue reliance on forward-looking information.

Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.

http://www.suttergoldmining.com/s/NewsReleases.asp?ReportID=585450&_Type=News-Releases&_Title=Sutter-Gold-Mining-Inc.-Signs-US-8-Million-Increase-and-Repayment-Extension...