Skygold Ventures Ltd. ("Skygold" or the "Company") (SKV-TSXV) is pleased to announce that it will be changing its name to "Spanish Mountain Gold Ltd." in January 2010 and that it has closed the previously announced $2 million "flow-through" financing.
"Spanish Mountain Gold Ltd"
The Company's Board of Directors has approved "Spanish Mountain Gold Ltd ." as the Company's new name. Subject to regulatory approval, the name change will become effective later in January. The Company will issue a further news release prior to the effective date of the name change and provide the new trading symbol. The name change reflects the future focus of the Company as it transitions from pure exploration to advancing to a development stage of the Spanish Mountain Gold Project in south-central British Columbia.
The main strategic focus of Spanish Mountain Gold Ltd will be to prepare for the commissioning of a Preliminary Economic Assessment of the Spanish Mountain Project in early 2010. This will be the first step to advance the project to the development stage. Preparatory work will include the completion of processing of HQ diameter drill core samples at G&T Metallurgical Laboratory in Kamloops, BC. Processing of these samples is currently underway to i) ascertain the potential for gold grade enhancement by utilizing larger samples from the larger diameter HQ drill core compared to smaller samples from NQ drill core and, ii) further refinement of metallurgical recoveries (the Company has previously disclosed that grinding and flotation of the mineralized material recovers 88% to 90% gold).
There will also be ongoing exploration of Thunder Ridge which is located approximately 100km south of Spanish Mountain.
The Company closed a non-brokered private placement on December 30, 2009, pursuant to which it issued 6,100,000 "flow-through" common share units ("FT Units") at a price of $0.33 per FT Unit for gross proceeds of $2,013,000. Each FT Unit consisted of one common share issued on a flow-through basis and one share purchase warrant (a "Warrant") of the Company. Each Warrant entitles the holder to purchase one (non-flow-through) common share for a period of three years at a price of $0.33 per share. The Company intends to use the proceeds to fund programs on the Company's Spanish Mountain Gold Project and Thunder Ridge properties. A cash finders' fee of 6% was paid to Wellington West Capital Markets Inc. All of the securities issued in connection with the private placement are subject to four month hold periods. The private placement is subject to the final acceptance of the TSX Venture Exchange.
On Behalf of the Board,
SKYGOLD VENTURES LTD
B&D Capital Partners
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that Skygold Ventures Ltd. expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Companies believe the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future perfo rmance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include the conditions of the letter agreement not being satisfied. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required under applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Suite 615 -- 800 West Pender St.
Vancouver , B.C. V6C 2V6
Fax (604) 684-0279
For more information contact B&D Capital Partners 604.685.6465