Sego Resources Proposes $600,000 Private Placement

Aug 3, 2016

Sego Resources Inc. (“Sego” or the “Company”) is proposing to raise up to $600,000 by way of a non-brokered private placement of units at a price of $0.05 per unit. Subject to certain limitations discussed below, the offering is open to all existing Sego shareholders.

The offering will consist of 12,000,000 units at a price of $0.05 per unit for gross proceeds of $600,000. Each unit will consist of one common share and one two-year common share purchase warrant. Each warrant will entitle the holder to purchase one share at a price of $0.075 in year one and $0.10 in year two.

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 August 2, 2016 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. Completion of the private placement is subject to the TSX Venture Exchange approval.

There is no minimum offering size for the private placement and the maximum number of units proposed to be issued is 12,000,000 units for gross proceeds of $600,000. The Company intends to use up to $450,000 for diamond drilling on the Miner Mountain Project, near Princeton, BC, and up to $150,000 for working capital. 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.

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

Insiders may participate in the placement and finder’s fees may be payable in accordance with the policies of the TSX Venture Exchange. All securities issued in connection with the private placement are subject to a 4-month and one day hold period in accordance with applicable Canadian securities laws.

Sego is 100% owner of the Miner Mountain Project, an alkalic copper-gold porphyry exploration project near Princeton, British Columbia. The property is 2,056.54 hectares in size and located 15 kilometres north of the Copper Mountain Mine operated by Copper Mountain Mining Corporation and Mitsubishi Copper. Sego has a Memorandum of Understanding with the Upper Similkameen Indian Band, in whose Traditional Territory the Miner Mountain Project is situated. Sego holds a 5-year exploration permit for the property and has received an Award of Excellence for its reclamation work at Miner Mountain.

http://segoresources.com/newsnew.html