VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/20/12 -- San Marco Resources Inc. (TSX VENTURE: SMN) announces that it is arranging a non-brokered private placement of 7,000,000 units at $0.10 per unit for gross proceeds of $700,000.
Each unit will consist of one common share and one-half of a non-transferable warrant, each whole warrant exercisable to purchase a further share for 24 months at $0.20. After the four month restricted resale period expires, the expiry of the warrants may be accelerated if the closing price of the Company's shares exceeds $0.40 per share for 20 consecutive trading days and the Company gives notice to the warrant holders that the warrants must be exercised or the warrants will expire in 30 days.
Finders' fees equal to 6% of the gross proceeds may be paid cash or shares. The size of the placement may be increased, or reduced, at the Company's option and is subject to regulatory approval.
The proceeds of the placement will be used for
-- Continuing drill target definition in the Company's 100% owned Los Carlos II property. -- Drill target identification on the recently acquired Angeles property. -- Continued drilling on the Los Carlos property. -- Working capital.
The placement is expected to close on June 29, 2012.
Retainer of Skanderbeg Capital Partners
San Marco also announces that it has retained the services of Skanderbeg Capital Partners Inc. as a corporate development consultant. Skanderbeg is a merchant banking group, focused on identifying, structuring and operating companies with highly prospective business opportunities around the world. Skanderbeg maintains offices in both North America and Europe and is headquartered in Vancouver, B.C.
The retainer is for an initial term of three months at a rate of $6,000 per month (to be paid from working capital) and may be extended by San Marco for a further nine months at a fee to be negotiated at such time. San Marco has also granted Skanderbeg an option to purchase 200,000 shares at $0.20 per share for a period of 5 years.
San Marco understands that Skanderbeg Capital holds 533,333 common shares and warrants to purchase a further 266,666 common shares of San Marco and that employees of Skanderbeg hold a further 318,333 shares and warrants to purchase 154,167 shares of San Marco.
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.