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San Marco Closes Oversubscribed Private Placement Financing

By January 29, 2015December 11th, 2019No Comments

San Marco Closes Oversubscribed Private Placement Financing

Vancouver, B.C. – January 29, 2015: San Marco Resources Inc. (SMN: TSX-V) (“San Marco” or “the Company”) has completed its non-brokered private placement financing announced on October 24 and December 17, 2014. A total of 12,967,500 units (“Units”) were issued at $0.05 per Unit for gross proceeds of $$648,375, a roughly 30% increase over the original financing target of $500,000. Insiders of the Company acquired 2,687,500 (or 21%) of the Units issued in this financing.

“We would like to take this opportunity to thank our shareholders, both new and existing, for their support in this very challenging market environment,” states Robert Willis, CEO of San Marco. “We are in the process of building a significant and strategic land position in northeastern Sonora State, Mexico centred around our Cuatro de Mayo project, where numerous highly prospective precious metal targets are known to occur. This financing will allow us to capitalize on opportunities that may arise to further enhance our Cuatro de Mayo asset through additional low-cost property acquisitions and eventually through targeted exploration programs.”

Each Unit consisted of one common share and one non-transferable warrant. Each warrant is exercisable to purchase a further share for three years, at $0.05 within the first year, $0.10 within the second year and $0.15 within the third year. Finder’s fees of $20,825 in cash were paid, and 248,500 units were issued to Haywood Securities Inc., representing 7% of the value of Units purchased by investors introduced by Haywood. Haywood was also issued 950,000 broker warrants, exercisable on the same terms as the warrants contained in the Units.

All common shares issued in connection with this financing, including common shares issued on exercise of the warrants, are subject to a four month restricted resale period expiring on May 28, 2015. The warrants expire on January 28, 2018 and have an acceleration provision such that the expiry date can be reduced to 20 trading days after notice thereof if, after May 28, 2015, the closing price of the Company’s common shares for 15 consecutive trading days equals or exceeds $0.20 in the first year, $0.25 in the second year or $0.30 in the third year.

The proceeds of the financing will be used for general working capital purposes, project generation efforts, and exploration activities on the Company’s Cuatro de Mayo project.

About San Marco
San Marco Resources Inc. is a Canadian mineral exploration company with a portfolio of three promising properties in mining-friendly Mexico, including the Cuatro de Mayo Project in Sonora State and the recently acquired El Chunibas area concession. The Company maintains a strategic project generation program focused on high-calibre, low-opportunity cost projects in the Cuatro de Mayo District. San Marco has a committed management team with extensive experience in Mexico and a proven track record of building shareholder value.

For further information, contact:

Robert Willis, CEO
Phone: 604-568-5951
Cell: 604-813-2606
Barbara Henderson, Investor Relations Officer and Corporate Secretary
Phone: 604-568-5951
Cell: 604-789-7689

Forward Looking Information
Information set forth in this document includes forward-looking statements, such as: the anticipated use of funds raised in the financing; and, the intent to acquire additional exploration projects. While these statements reflect management’s current plans, projections and intents, by their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the control of San Marco Resources Inc. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on these forward-looking statements. San Marco’s actual results, programs and financial position could differ materially from those expressed in or implied by these forward-looking statements.

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.