Sienna Gold Inc. Announces Financing and Settlement with Creditor
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 FINANCING AND SETTLEMENT WITH CREDITOR
March 29, 2010
PRESS RELEASE FOR IMMEDIATE RELEASE
Calgary, Canada – Sienna Gold Inc. (“Sienna” or the “Corporation”) (TSXV - SGP) wishes to announce that it has engaged Northern Securities Inc. (the “Agent”), as agent, to assist the Corporation, on a best-efforts basis, with a private placement of up to $1,200,000. The offering consists of up to 10,000,000 units at $0.12 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 $0.18 for a period of two years from closing. If during the two year period the shares trade at $0.30 or above for 20 business days the Corporation may give the holders 30 days notice to exercise the warrants and all unexercised warrants at the end of that period will expire. Proceeds will be used for further exploration work on the Corporation's Igor Mine Project in Peru and for general working capital. Sienna will pay commission of 10% and 10% broker warrants, of which each broker warrant will entitle the Agent to purchase an additional unit at $0.12 for two years from closing. This financing is subject to regulatory approval.
The Corporation has, subject to regulatory approval, settled a disputed account ($377,000) with a creditor with the issuance of 1,500,000 common shares at a deemed price of $0.15 per share and $50,000 in cash.
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. The Corporation recently signed an agreement to acquire an additional 300ha contiguous to the property’s southeast boundary.
Upon completion of this financing the Corporation will commence a 2500 meter drilling program on the IGOR property. This program will follow up on the discovery hole previously announced which over 218.4 meters from surface contained 0.6 g/t gold(Au) and 22.6 g/t silver (Ag) with higher grade intervals of 3.8 meters 7.0 g/t Au, 74.7 g/t Ag and 3.5 meters 2.2 g/t Au and 349.8 g/t Ag. The hole finished in porphyry mineralization and the bottom 2 meters contained 1.7 g/t Au, 61.8 g/t Ag, and 0.44% copper (Cu)
This news release has been reviewed by Mr. Murray Lytle, P.Eng. of Snowden Mining Industry Consultants Ltd. who is our qualified person for this project, as defined in NI 43- 101.
For any further information contact:
John M. Rucci President Sienna Gold Inc.
(403) 508 2061
Neither 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.
WARNING: the Company relies upon litigation protection for “forward looking” statements. The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary material include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic conditions or conditions in the financial markets and the inability to raise additional financing. Readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.