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8-K - CURRENT REPORT - Santa Fe Gold CORP | form8k.htm |
EX-99.1 - NEWS RELEASE DATED DECEMBER 15, 2011 - Santa Fe Gold CORP | exhibit99-1.htm |
EX-99.3 - ARRANGEMENT AGREEMENT - Santa Fe Gold CORP | exhibit99-3.htm |
1128 Pennsylvania NE, Suite 200, Albuquerque, New Mexico 87110 | Tel: 505-255-4852 | www.santafegoldcorp.com
SANTA FE GOLD OBTAINS FINANCING TO PROCEED WITH
COLUMBUS SILVER ACQUISITION
ALBUQUERQUE, New Mexico January 5, 2012 Santa Fe Gold Corporation (OTCBB: SFEG) is pleased to announce it has satisfied an important financing condition to proceed with its acquisition of Columbus Silver Corporation (TSXV: CSC). Santa Fes $20 million debt financing announced December 23, 2011 provides for a conditional $10 million facility earmarked for the acquisition of Columbus Silver and satisfies the financing requirement under the definitive agreement between Santa Fe and Columbus Silver. The acquisition, when completed, will add significantly to
Santa Fes silver and gold resources potentially available for processing at its fully permitted and operating flotation mill near Lordsburg, New Mexico.
Santa Fe announced December 15, 2011 it had conditionally agreed to acquire all of the common stock of Columbus Silver for CDN$0.20 per share in a cash transaction valued at approximately $10 million. The parties have agreed to use commercially reasonable efforts to complete the transaction by March 31, 2012, and in any event by May 31, 2012. The acquisition remains subject to conditions, including Columbus Silver obtaining shareholder and regulatory approvals.
Santa Fes President and CEO, Pierce Carson, said As a result of a series of transactions recently completed, the Company now has a much stronger balance sheet and is in a position to move forward with the strategic acquisition of Columbus Silver. These transactions include completion of $20 million in long term debt financing and an additional $5 million revolving credit facility, retirement of $5 million of short term debt, and conversion to equity at $1.00 per share of $13.5 million in convertible debt due December 31, 2012.
Dr. Carson continued, We believe that collectively these transactions represent an important milestone for Santa Fe. We now enjoy an enhanced capital structure, which should provide the platform for us to execute our strategic long-term growth objectives, including expansion of our Lordsburg mining and milling operations and development of the Ortiz gold project.
Additional Information:
The Arrangement and
Financing Agreements with Columbus Silver will be included as Exhibits to Santa
Fes Current Report on Form 8-K to be filed with the SEC, and available at
www.sec.gov and at www.sedar.com.
About Santa Fe Gold:
Santa Fe Gold is a U.S. -based
mining and exploration enterprise focused on acquiring and developing gold,
silver, copper and industrial mineral properties. Santa Fe controls: (i) the
Summit mine and Lordsburg mill in southwestern New Mexico, which began
processing operations in 2010; (ii) a substantial land position near the
Lordsburg mill, comprising the core of the Lordsburg Mining District; (iii) the
Ortiz gold property in north-central New Mexico; (iv) the Black Canyon mica
deposit and processing equipment near Phoenix, Arizona; and (v) a deposit of
micaceous iron oxide (MIO) in western Arizona.
Santa Fe Gold intends to build a portfolio of high -quality, diversified mineral assets with an emphasis on precious metals.
To learn more about Santa Fe Gold, visit www.santafegoldcorp.com.
Cautionary Note Regarding Forward-Looking Statements:
This press release contains forward-looking statements and
forward-looking information (collectively, forward-looking statements) within
the meaning of applicable US and Canadian securities legislation. All
statements, other than statements of historical fact, included herein are
forward-looking statements. Although the Company believes that such statements
are reasonable, it can give no assurance that such expectations will prove to be
correct. Forward-looking statements are typically identified by words such as:
believe, expect, anticipate, intend, estimate, postulate and similar
expressions, or are those, which, by their nature, refer to future events. The
Company cautions investors that any forward-looking statements by the Company
are not guarantees of future results or performance, and that actual results may
differ materially from those in forward looking statements as a result of
various factors, including, but not limited to, variations in the nature,
quality and quantity of any mineral deposits that may be located, variations in
the market price of any mineral products the Company may produce or plan to
produce, the Company's inability to obtain any necessary permits, consents or
authorizations required for its activities, the Company's inability to produce
minerals from its properties successfully or profitably, to continue its
projected growth, to raise the necessary capital or to be fully able to
implement its business strategies, and other risks and uncertainties disclosed
in the Companys Annual Report on Form 10-K for the year ended June 30, 2011 and
its most recent quarterly reports filed with the United States Securities and
Exchange Commission (the SEC), and other information released by the Company
and filed with the appropriate regulatory agencies. All of the Company's US
public disclosure filings may be accessed via www.sec.gov and its
Canadian public disclosure filings may be accessed via www.sedar.com, and
readers are urged to review these materials.
Contact:
Santa Fe Gold Corp
W. Pierce Carson,
President and Chief Executive Officer
505-255-4852