|T.S.E. SYMBOL: SAO
S.E.C. Registration: 0-22216
|Vancouver, British Columbia, June 3, 1997: San Andreas Resources Corporation (the "Company") is pleased to announce that Sheridan Platinum Group Ltd. ("Sheridan Group"), a company controlled, directly and indirectly, by its President Mr. Pat (J.P.) Sheridan ("Sheridan") has agreed to subscribe for the whole of the private placement of 1,750,000 units at a price of $0.45 per unit to raise gross proceeds of $787,500, as announced on May 22, 1997. Each unit will be comprised of one "flow-through" common share in the capital of the Company and one non-transferable share purchase warrant. One warrant will entitle the holder to purchase one additional "flow-through" common share of the Company at a price of $0.50 per share. The warrant will be exercisable up to and including September 30, 1997. A finder's fee of $10,000 will be payable.
Following the closing of the private placement and the issue of 1.75 million common shares in the Company, Sheridan Group and Mr. Tony Millar will have an interest in 1,970,000 shares representing 11.1% and 3,068,436 shares representing 17.3% respectively, of the common shares then in issue.
The board of the Company and Sheridan have agreed to work together to investigate new commercial advantages and opportunities for the Company. Discussions have commenced between the Company and Sheridan as to how the benefits of a hydrometallurgical process, developed by Sheridan, may be applied to bring cost advantages in the future to the processing of concentrates from Prairie Creek following the commencement of mine production.
Closing is subject to board and regulatory approval and the completion of final documentation. The proceeds of the finance will be used for working capital and metallurgical work to be done on its Prairie Creek property. A further announcement will be made as soon as the private placement has closed.
|FOR FURTHER INFORMATION PLEASE CONTACT:
SAN ANDREAS RESOURCES CORPORATION
|Tony Millar, Chairman & C.E.O.||(UK):||011 44 1252 794740|
|Alan Taylor, President||(CANADA):||(604) 688-2001|
|SHERIDAN PLATINUM GROUP LTD.|
|Pat Sheridan, President||(CANADA):||(416) 363-4477|