VANCOUVER, BRITISH COLUMBIA, Jul 16, 2009 (Marketwire via COMTEX) -- SANRF | Quote | Chart | News | PowerRating --
Santoy Resources Ltd. (TSX VENTURE:SAN) is announcing, in the context of the market, a re-pricing of the proposed non-brokered private placement financing announced May 14, 2009, subject to regulatory approval. Each Unit will comprise one common share at a price of 10 cents per share, and one-half of one share purchase warrant. Each whole warrant is exercisable at 12 cents per share for a five-year period.
The warrants will have an acceleration clause whereby if the Company's shares trade at or greater than 40 cents for 10 consecutive days, the remaining exercise period may be reduced, at the election of the Company and upon notice to the warrant holders, to 25 days. The securities issued under this placement will be free trading as a consequence of an Exchange exemption due to the prospective level disclosure in the Company's Information Circular dated April 24, 2009 setting out the Plan of Arrangement with Virginia Uranium Ltd. This private placement will be completed by close of business on July 16, 2009.
A portion of this proposed financing will be applied to increasing the Company's equity position in VA Uranium Holdings Inc., which initial transaction was announced in a Company news release dated Dec. 22, 2008 wherein Santoy and a private corporation, Virginia Uranium Ltd. have agreed to a business combination by way of a Plan of Arrangement, now scheduled to close July 21, 2009. Virginia Uranium Ltd. owns an interest in the Coles Hill uranium deposit located in southern Virginia.
Coles Hill, considered to be one of the largest undeveloped uranium deposits in the United States, had been advanced through to the feasibility stage in 1982 and has now been investigated by 220 drill holes. It has an estimated measured and indicated resource of 119 million pounds of U3O8 (at a cut-off grade of 0.025 per cent U3O8) based on a National Instrument 43-101 technical report on the Coles Hill property prepared for Santoy Resources by Behre Dolbear and Company Ltd., Marshall Miller and Associates Inc., and PAC Geological Consultant Inc. (Dr. Peter Christopher, P.Eng.) dated Feb. 2, 2009, and revised April 29, 2009. This report is available on SEDAR and on Santoy Resources' website at www.santoy.ca.
On Behalf of the Board of Directors
SANTOY RESOURCES LTD.
R. K. Netolitzky, President & CEO
SOURCE: Santoy Resources Ltd.
Santoy Resources Ltd.
Santoy Resources Ltd.
Investor Relations, Manager
(604) 669-2543 (FAX)