St Augustine Gold raises up to $12 million for King-king project

MANILA, Philippines - Canadian-listed mining firm St. Augustine Gold and Copper Limited is raising CDN$10 million to $12 million to advance the company’s King-king project in the Philippines.

In a disclosure to the Toronto Stock Exchange, St. Augustine announced a non-brokered private placement offering for gross proceeds of CDN$10 million to $12 million pursuant to the issue of up to 30,000,000 units of St. Augustine at a price of $0.40 per unit.

One Canadian dollar is equivalent to 0.9879 US dollars.

The net proceeds of the unit offering will be used for advancing the company’s King-king project in the Philippines and for working capital and general corporate purposes.

The offering will be presented by way of private placement via a subscription agreement to accredited investors in all provinces of Canada and in other eligible foreign jurisdictions pursuant to applicable private placement exemptions under applicable securities laws in such jurisdictions.

Insiders of St. Augustine may, subject to regulatory approval, participate in the offering.

The closing of the offering is expected to occur on or before Nov. 11, 2011, and is subject to approval of the TSX.

A bankable feasibility study for the King-king mine project of Philippine subsidiary St. Augustine Mining Limited and NADECOR is expected to be completed in the second quarter of 2012.

King-king is one of the largest undeveloped copper-gold deposits in the world.

The King-king deposit is a gold rich copper-gold porphyry deposit located in the south east of the Philippine Island of Mindanao, 35kms east of Davao City and 13 km from the coast.

The project is listed as one of the top priority projects by the Philippine Mines and Geosciences Bureau.