|T.S.E. SYMBOL: SAO
S.E.C. Registration: 0-22216
|CLOSING OF PRIVATE PLACEMENT|
|Vancouver, British Columbia, July 9, 1997: San Andreas Resources Corporation (the "Company") is pleased to announce that the private placement of 1,750,000 units at a price of $0.45 per unit to raise gross proceeds of $787,500, announced on June 3, 1997 has closed today following receipt of regulatory approval. Each unit is comprised of one "flow-through" common share in the capital of the Company and one non-transferable share purchase warrant. One warrant entitles 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.
The private placement was subscribed for by placees which included The Sheridan Platinum Group Ltd., a company whose President is Mr. Pat (J.P) Sheridan ("Sheridan"). The board of the Company and Sheridan have agreed to work together to investigate new commercial advantages and opportunities for the Company. The Company and Sheridan are discussing 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.
The proceeds of the financing will be used for working capital and metallurgical work on the Company's Prairie Creek property, a high grade zinc, lead and silver project located in the Northwest Territories of Canada.
|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|