VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 17, 2009) - Santoy Resources Ltd. (TSX VENTURE:SAN) is pleased to announce completion of the first tranche of its previously announced non-brokered private placement financing announced May 14, 2009. Each Unit will comprise one common share at a price of 10 cents per share, and one-half of one share purchase warrant. Each whole warrant is exercisable at 12 cents per share for a five-year period. The warrants will have an acceleration clause whereby if the Company's shares trade at or greater than 40 cents for 10 consecutive days, the remaining exercise period may be reduced, at the election of the Company and upon notice to the warrant holders, to 25 days. A total of 19,926,200 common shares and 9,963,100 warrants were issued under this placement, for a gross consideration of $1,992,620, and will be free trading as a consequence of an Exchange exemption due to the prospective level disclosure in the Company's Information Circular dated April 24, 2009 setting out the Plan of Arrangement with Virginia Uranium Ltd. Finder's fee and commissions will be payable to qualified third party agents.
The second and final tranche, of a further firm $2 million plus, is scheduled to be completed next week. Shares issued under this portion will be subject to a hold period of 4 months and 1 day as they will have been approved post plan of Arrangement closing.
A portion of this proposed financing will be applied to increasing the Company's equity position in VA Uranium Holdings Inc., which initial transaction was announced in a Company new release dated Dec. 22, 2008 wherein Santoy and a private corporation, Virginia Uranium Ltd. have agreed to a business combination by way of a Plan of Arrangement, now scheduled to close July 21, 2009. Virginia Uranium Ltd. owns an interest in the Coles Hill uranium deposit located in southern Virginia. Coles Hill, considered to be one of the largest undeveloped uranium deposits in the United States, had been advanced through to the feasibility stage in 1982 and has now been investigated by 220 drill holes. It has an estimated measured and indicated resource of 119 million pounds of U3O8 (at a cut-off grade of 0.025 per cent U3O8) based on a National Instrument 43-101 technical report on the Coles Hill property prepared for Santoy Resources by Behre Dolbear and Company Ltd., Marshall Miller and Associates Inc., and PAC Geological Consultant Inc. (Dr. Peter Christopher, P.Eng.) dated Feb. 2, 2009, and revised April 29, 2009. This report is available on SEDAR and on Santoy Resources' website.
On Behalf of the Board of Directors
SANTOY RESOURCES LTD.
R. K. Netolitzky, President & CEO
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.