Sona Closes Private Placement
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/15/10 -- Sona Resources Corp. (the 'Company' or 'Sona') (TSX VENTURE: SYS)(FRANKFURT: QS7) is pleased to announce that it has closed its non-brokered private placement of 770,000 units (the 'Units') at an offering price of $0.65 per Unit, for gross proceeds of $500,500. Each Unit consists of one common share and one warrant (a 'Warrant'), with each Warrant entitling the holder to purchase, for a period of 24 months following the closing date, one additional common share of the Company at a price of $1.00 in the first 12 months, and at $1.25 thereafter. The Company has also issued 39,692 Units as compensation to certain finders (the 'Finder's Units') in connection with the private placement. The Finder's Units have the same terms as the Units issued pursuant to the private placement.
All securities issued pursuant to the private placement will be subject to a four-month hold period expiring on February 16, 2011. The proceeds of the financing will be used for exploration and development work on the Elizabeth Gold Property and the Blackdome Gold Mine, and for working capital requirements.
About Sona Resources Corp.
Since its inception in 1990, Sona has engaged in exploration activities at its mineral properties in Canada and the United States, as well as small-scale gold production at its flagship property, the 100 percent owned Blackdome Gold Mine ('Blackdome'), in south-central British Columbia. At Blackdome, the indicated mineral resources are estimated to be 144,500 tonnes, grading 11.29g Au/t and containing 52,600 ounces of gold, and the inferred resource is estimated to be 90,600 tonnes, grading 8.79g Au/t (news release May 4, 2010). At its 100 percent owned Elizabeth Gold Property, 30 kilometres south of the Blackdome Gold Mine, Sona has outlined an inferred gold resource of 522,900 tonnes, grading 12.3g Au/t and containing 206,100 ounces of gold (news release June 8, 2009). Sona aims to bring the fully permitted Blackdome mill back into production over the next three years at a rate of 200 tonnes per day, with feed from the former-producing Blackdome Gold Mine and the Elizabeth Gold Property. A positive Preliminary Economic Assessment by Micon International Ltd. (news release May 28, 2010), at a gold price of $950 per ounce over an eight-year period, has estimated pre-tax cash flow of $27 million and pre-production capital costs of $21 million.
Sona holds a 100 percent interest in two other promising properties: The Callaghan Project is located in Nevada, within 80 kilometres of several producing mines, and is underlain by the Roberts Mountain Thrust, a major structural setting for gold deposits. The Montgolfier Project is located in Quebec, 40 kilometres east of the multimillion-ounce Casa Berardi Mine gold deposit.
This news release contains certain forward-looking statements, and such statements involve risks and uncertainties. The results or events predicted may differ materially from actual results or events. Any forward-looking statement speaks only as of the date of this news release. Except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results, or any other occurrence.
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.
Contacts:
Sona Resources Corp.
+1 (888) 236-5200
+1 (604) 684-6678 (FAX)
info@sonaresources.com
www.sonaresources.com
Marston Webb International - Media Inquiries
Victor Webb/Madlene Olson
+1 (212) 684-6601
+1 (212) 725-4709 (FAX)
marwebint@cs.com