Sienna Gold Inc. Announces Closing of Financing
Suite 117,339 50th Avenue S.E.
Calgary, Alberta Canada T2G 2B3 Phone: (403) 508 2061; Fax: (403) 508 2670; email: [email protected]
SIENNA GOLD INC. ANNOUNCES CLOSING OF FINANCING
November 8, 2010
PRESS RELEASE FOR IMMEDIATE RELEASE
Calgary, Canada – Sienna Gold Inc. (“Sienna” or the “Corporation”) (TSXV - SGP) wishes to announce that it has, subject to final regulatory approval, completed a private placement financing of US $900,000. This financing will be completed on a bought deal basis by Grupo Privado de Inversiones – Valores S.A., Sociedad Agente de Bolsa ("GPI") The Corporation issued 5,294,120 units at US$0.17 per unit, with each unit consisting of one common share and one common share purchase warrant. Each warrant entitles the holder to subscribe for one additional share for CDN$0.26 for a period of one year from closing. Proceeds will be used for further exploration work on the Corporation's Igor project in Peru and for general working capital. Sienna paid commissions of $63,000 to GPI and issued 370,588 broker warrants, each of which will entitle the holder to subscribe for one additional unit at the issue price for a period of one year from closing. .
The securities issued are subject to trading restrictions to March 2, 2011.
These funds will enable the Company to complete its planned drilling program. The Corporation also announced in the news release of October 5, 2010 that its drilling program was to commence on October 14, 2010. As this did not occur, the Corporation terminated the current drilling contractor due to non compliance with contract provisions. The Corporation has identified a new contractor, and the drilling rig should be on the property this week.
Results from the last round of sampling on the Callanquitas access road.
31 samples.
2 samples greater than a 1 g/t Au.
These samples come from a previously unsampled area of the access roads between platforms B and C.
Although grades were generally lower, these results allowed Sienna to define an interval of 60.5m @ 0.69 g/t Au and 13.5 g/t Ag that includes 12m @ 2.6 g/t Au and 161.4 g/t Ag as reported in the press release of September 15, 2010 This press release was reviewed and approved by Owen Miller (Aus IMM Member No 207275), consultant to Sienna Minerals. (a wholly owned subsidiary of Sienna Gold Inc.), who is a “Qualified Person” according to National Instrument 43-101.
Sienna Gold Inc. is a gold exploration company with property interests in Peru. Its key prospect is the Igor Mine Project, a formerly producing mine that the Corporation plans to explore further.
For any further information contact:
John M. Rucci President Sienna Gold Inc.
(403) 508 2061
The TSX Venture exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.