REPEAT/Santa Cruz Inc. announces $6,000,000 maximum special warrant financing.
Each Special Warrant will entitle the holder to acquire one Common Share and one-half of one Common Share Purchase Warrant in the capital of Santa Cruz for no additional consideration. Each whole Common Share Purchase Warrant will entitle the holder to purchase one Common Share of Santa Cruz at a price of $2.00 for a period of 12 months following the closing of the private placement.
Santa Cruz intends to file a prospectus to qualify the Common Shares and Common Share Purchase Warrants issuable upon exercise of the Special Warrants as soon as practicable. Santa Cruz will suffer a dilution penalty of 10% if receipts for the final prospectus are not obtained within 90 days of the closing. Closing of the Special Warrant transaction is subject to Santa Cruz obtaining all requisite regulatory approvals.
Net proceeds derived from the Special Warrant financing are intended to be used to further explore and develop the Magistral Gold Project located in Sinaloa, Mexico and for working capital. Santa Cruz is in the process of completing a 17,000 m drill campaign at the Magistral Gold Project designed to in-fill and expand the current insitu resource of 1.35 million ounces of gold.
Santa Cruz is a gold exploration company and will be acquiring all the property rights relating to the Magistral Gold Project pending completion of a Scheme of Arrangement by Mogul Mining N.L., an Australian public company which is scheduled for early May 1996. Currently Santa Cruz has the right to earn a 60% interest in the Magistral Gold Project from Mogul. In addition, Santa Cruz has the right to acquire a 100% interest in the Quitovac Gold Project located in the State of Sonora, Mexico and the El Escobal Gold Project which is located in the State of Sinaloa, Mexico.
At Santa Cruz's El Escobal Gold Project, a successful trenching campaign recently completed will be followed up by a drill program. At the Quitovac Gold Project a program of geological mapping and surveying has been completed in preparation for a 25 hole, 2,000 m drill program. Both of these programs are expected to commence this summer. The Quitovac Gold Project hosts an insitu resource of 150,000 ounces of gold.
CONTACT: John McBride or Nick Tintor, 416-864-0856