Sego Proposes $65,000 Private Placement
SEGO RESOURCES INC.
Suite 310 -744 West Hastings Street Vancouver, BC V6C 1A5 TSX-V: SGZ Tel: (604) 682-2933 www.segoresources.com Toll Free: 1-866-683-2933
October 21, 2015 Sego Proposes $65,000 Private Placement
Sego Resources Inc. (Sego or the Company) is proposing to raise up to $65,000 by way of a non-brokered private placement of units of the company at a price of two cents ($0.02). Subject to certain limitations discussed as follows, the offering is open to all existing Sego shareholders. The offering will require a discretionary pricing waiver in order to close the private placement from the TSX Venture Exchange.
The offering will consist of 3,250,000 units at a price of $0.02 per unit for gross proceeds of $65,000.00. Each unit will consist of one common share and one common share purchase warrant. Each warrant will entitle the holder to purchase one share at a price of five cents ($0.05) for a period of two years.
The offering is open to all existing shareholders of the Company and all interested investors provided that a prospectus exemption is available for the Company to issue Units to such investors. For existing shareholders who as of the close of business on October 20, 2015 held common shares of the Company and continue to hold common shares at the time of closing an additional prospectus exemption is available pursuant to British Columbia Instrument 45-534 (and in similar instruments in other Provinces of Canada). Unless such shareholder is a person that has obtained advice regarding the suitability of the investment and, if such shareholder is resident in a jurisdiction of Canada, that advice has been obtained from a person that is registered as an investment dealer in such jurisdiction, the aggregate subscription cost to such shareholder for the Units subscribed under the Existing Shareholder Exemption cannot exceed $15,000.00 (750,000 units). Completion of the Private Placement is subject to the TSX Venture Exchange approval. There is no minimum offering size for the Placement.
Insiders may participate in the placement and finder’s fees may be payable in accordance with the policies of the TSX Venture Exchange. All securities issued in connection with the private placement are subject to a 4-month and one day hold period in accordance with applicable Canadian securities laws.
Funds raised are for payment of some outstanding debt and working capital. The use of proceeds will include audit fees ($21,000.00), some outstanding legal fees ($15,000.00), filing fees (approximately $5,000.00), costs associated with the AGM and transfer agent ($5,000.00), financial reporting ($10,000), Exchange fees (approximately $5,000.00) and ongoing office expenses ($4,000.00). The Company fully expects to spend the funds as stated; there may be circumstances, for sound business reasons, where a reallocation of funds may be necessary.
Sego is 100% owner of the Miner Mountain Project, an alkalic copper-gold porphyry exploration project near Princeton, British Columbia. The property is 2,056.54 hectares in size and located 15 kilometres north of the Copper Mountain Mine operated by Copper Mountain Mining Corporation and Mitsubishi Copper. Sego has a Memorandum of Understanding with the Upper Similkameen Indian Band, in whose Traditional Territory the Miner Mountain Project is situated. Sego holds a 5-year exploration permit for the property and has received an Award of Excellence for its reclamation work at Miner Mountain.
For further information please contact:
J. Paul Stevenson, CEO (604) 682-2933
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. No regulatory authority has approved or disapproved the information contained in this news release. This release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statement of historical facts that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects re forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, statements are not guarantees of future performance and actual results or developments may differ materially from the forward- looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements.