Strongbow Exploration Inc. (SBW: TSXV) is pleased to announce the closing of a brokered private placement through Haywood Securities Inc. of 15,000,000 common shares of Strongbow at a price of CDN$0.24 per common share for gross proceeds of CDN$3,600,000. Thirteen million (13,000,000) common shares of the private placement were purchased by Sun Valley Gold Master Fund, Ltd., representing approximately 16% of the issued and outstanding common shares of Strongbow. Net proceeds from the private placement financing will be used to fund exploration activities at Strongbow's Midway gold project in South Carolina as well as general working capital.
"Strongbow welcomes Sun Valley Gold as its newest and largest shareholder. We believe Sun Valley will be a strong partner to Strongbow as they have significant experience investing in South Carolina and their investment in Strongbow is an endorsement of the Company's exploration strategy at the Midway gold project," commented Ken Armstrong, Strongbow's President and Chief Executive Officer.
The Company has paid Haywood a cash fee equal to 5% of the gross proceeds from the sale of the common shares and has issued to Haywood 750,000 Agent's warrants. Each Agent warrant is exercisable to acquire one common share of the Company at $0.35 per share exercisable until November 15, 2011. All of the common shares, including any common shares issuable on the exercise of the Agent's warrants are subject to a four month hold period expiring March 16, 2011.
About Strongbow Exploration Inc.
Strongbow is a technically driven exploration company exploring for gold deposits within the Carolina Slate Belt of the southeastern United States, as well as magmatic nickel-copper sulphide deposits along the Snowbird Tectonic Zone in central Canada. Strongbow's management and board of directors have a proven track record of exploration success and a demonstrated ability to raise the capital required to finance its exploration programs. Strongbow's 2010 exploration programs are conducted under the supervision of David Gale, P.Geo.(BC), Vice-President of Exploration for Strongbow and a qualified person under NI 43-101.
STRONGBOW EXPLORATION INC.
/s/"Kenneth A. Armstrong"
Kenneth A. Armstrong
President and CEO
For further information, please contact:
President and CEO
Tel: 604 668 8355