Mining Investor News; St. Eugene Mining Corporation (TSX VENTURE:SEM) Closes Private Placement

Mining Investor News; St. Eugene Mining Corporation  (TSX VENTURE:SEM) Closes Private Placement


TORONTO, ONTARIO--(http://www.investorideas.com/ gold and mining stocks blog)  - Oct. 15, 2010) - St. Eugene Mining Corporation Ltd. (TSX VENTURE:SEM) ("St. Eugene" or the "Company") announces the closing of a non-brokered private placement offering of an aggregate gross proceeds of $1,168,008. The Company issued 6,250,066 Units at a price of $0.12 per Unit for gross proceeds of $750,008. Each of these Units are comprised of one flow-through common share and one-half of one non-flow through Purchase Warrant. Each full Purchase Warrant entitles the holder to acquire one non-flow through common share of the Company at a price of $0.16 per share for 15 months from closing, or earlier pursuant to the acceleration terms set out below.
Additionally, the Company increased the amount of its non-flow through offering from $350,000 to $418,000 by the issuance of 4,180,000 Units at a price of $0.10 per Unit. Each Unit was comprised of one non flow-through common share and one full Purchase Warrant. Each full Purchase Warrant entitles the holder to acquire one non-flow through common share of the Company at a price of $0.14 per share for period of 12 months from the date of issuance, and at $0.18 for the ensuing 6 months thereafter, or earlier pursuant to the acceleration terms set out below.
The proceeds will be allocated to the Company's Canadian projects, namely, activities associated with re-commissioning the Tartan Lake Gold Mine, as well as a follow up drill program at the Amisk Lake Gold property near Flin Flon, Manitoba.
The Offering was made to residents of any Canadian Province in reliance upon applicable exemptions from registration and prospectus requirements. The closing of the private placement remains subject to the receipt of all required regulatory approvals, including the approval of the TSX Venture Exchange. All securities issued pursuant to the offering are subject to a hold period of four months from the date of closing.
A finders fee equal to 7% of the gross proceeds raised, in addition to the issuance of a number of Broker's Warrants equal to 7% of the number of Units issued, was paid to qualifying arms length finders totaling $73,150.55 and 644,005 brokers warrants. Each Broker's-Warrant entitles the finder to acquire one non-flow through common share of the Company at a price of $0.10 for a period of 12 months.
If on any 20 consecutive trading days after the issuance of the Purchase Warrants, the closing sales price (or closing bid price on the days when there are no trades) of the common shares of St. Eugene on the TSX Venture Exchange is greater than $0.25, the expiry date of the Purchase Warrants shall accelerate and be automatically amended to be the 30th day after the date on which the Company gives notice to the Warrant holder of such acceleration.

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.
For more information, please contact
St. Eugene Mining Corporation Ltd.
Jennifer L. Boyle, B.A., LL.B.
Chief Executive Officer
647-430-0966 (office) or 416-904-2714 (cell)
jennifer@capexgroupinc.com
or
St. Eugene Mining Corporation Ltd.
Kevin Weston
President
647-430-0966 (office) or 604-365-4477 (cell)
kevin@steugenemining.ca


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