MarketSmart Resources

SEGO RESOURCES CLOSES FIRST TRANCHE OF FINANCING AND INITIATES NEW DRILLING PROGRAM

June 7, 2018 - Sego Resources Inc. (“Sego” or “the Company”) is pleased to announce that the Company has applied to the TSX-V to close the first tranche of a new financing for total gross proceeds of $714,510 as part of the financing announced on April 23, 2018.

In the first closing of the financing, Sego will issue 5,850,000 units at $0.05 per unit of Flow Through Units (“FTU”) for gross proceeds of $ 292,500 and 8,440,200 units at $0.05 per unit of Non-Flow Through Units (“NFTU”) for gross proceeds of $ 422,010. This issuance is subject to regulatory approval. Each FTU unit consists of one common share and one-half of one share purchase warrant.  Each full FTU warrant entitles the holder to purchase an additional common share at $0.10 for two years from the date of closing of the first tranche of the private placement.  Each NFTU consisted of one common share and one share purchase warrant.  Each NFTU warrant entitles the holder to purchase an additional common share at $0.10 for four years from the date of closing of the first tranche of the private placement. The securities issued under this first closing are subject to the applicable statutory four month plus one day hold period from the date of issuance.  Directors and Senior Officers of the Company have subscribed for FTU and NFTU in the first tranche of this financing totaling $290,510.

Finder’s fees will be payable on a portion of the private placement and will consist of 7% cash and 7% Broker’s Warrants, each Broker Warrant entitles the holder to subscribe for additional NFTU or FTU, as the case may be, at $0.05 for two years from the date of closing of the first tranche of the private placement.

The flow through proceeds will be expended on the continued exploration of the Company’s Miner Mountain Copper-Gold Alkalic Porphyry project located near Princeton, BC.  The non-flow through proceeds will be used for working capital and general corporate purposes.  It is expected by the Company and its driller that the drilling program will begin on Miner Mountain on or about June 16, 2018. The Company fully expects to spend the funds as stated; there may be circumstances, for sound business reasons, where a reallocation of funds may be necessary.

 

The Company has applied to the TSX Venture Exchange for an additional 45-day extension to complete a further tranche of this private placement. The offering is open to all existing Sego shareholders and non-shareholders subject to certain limitations indicated below.

This offering is subject to the completion of formal documentation, receipt of all necessary regulatory approvals, including the TSX Venture Exchange and other customary conditions. 

The offering is open to all existing shareholders of the Company and all interested investors provided that a prospectus exemption is available for the Company to issue units to such investors.  For existing shareholders who as of the close of business on April 23, 2018 held common shares of the Company and continue to hold common shares at the time of closing, an additional prospectus exemption is available pursuant to British Columbia Instrument 45-534 (and in similar instruments in other Provinces of Canada).  Unless such shareholder is a person that has obtained advice regarding the suitability of the investment and, if such shareholder is resident in a jurisdiction of Canada, that advice has been obtained from a person that is registered as an investment dealer in such jurisdiction, the aggregate subscription cost to such shareholder for the units subscribed under the Existing Shareholder Exemption cannot exceed $15,000 or 300,000 units. 

The Company also plans to utilize British Columbia Instrument 45-536 which opens private placements to non-accredited investors provided the purchaser has obtained advice regarding the suitability of the investment and that advice has been obtained from a person that is registered as an investment dealer in the jurisdiction.

There is no material change about the issuer that has not been generally disclosed.

For further information please contact:

 J. Paul Stevenson, CEO (604) 682-2933

For investor & shareholder information, please contact:

MarketSmart Communications Inc.
Ph: +1 877 261-4466
Email: info@marketsmart.ca

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. No regulatory authority has approved or disapproved the information contained in this news release.

This release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statement of historical facts that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects re forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, statements are not guarantees of future performance and actual results or developments may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements.


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