SANTO DOMINGO, Dominican Republic, Dec. 27, 2012 (GLOBE NEWSWIRE) -- Santo Mining Corporation (OTCBB:SANP), (the "Company") announced that on December 19, 2012 the Company entered into a $5 million investment agreement (the "Investment Agreement") with Deer Valley Management, LLC (the "Investor"), headquartered in White Plains, New York. The Investment Agreement will enable Santo Mining to significantly scale up its exploration programs next to Barrick Gold's reported 25 million ounce Pueblo Viejo mine, Perilya's Cerro de Maimon gold mine, and Xstrata Falcondo's world class nickel mine strategically located in the Dominican Republic's mineral rich "Hispaniola Gold-Copper Arc".
The Investment Agreement allows, but does not obligate the Company to issue and sell up to $5 million of shares of common stock to the Investor. The Company, at its sole discretion and without penalty, may notify the Investor the dollar amount that the Company intends to sell to the Investor on a specified date. The Investor will purchase the shares at a 22.5% discount based on 100% of the average daily volume of the Company's common stock, up to $1 million.
The Company also entered into a securities purchase agreement (the "Securities Purchase Agreement") with the Investor. Pursuant to the Securities Purchase Agreement, the Investor has agreed to purchase 400,000 shares of the Company's common stock upfront at $0.20 per share for $80,000. Santo Mining will file a Registration Statement with the Securities and Exchange Commission within 30 days and all registration costs will be paid by the Investor. Full details of the finance commitment are published in an 8K filing with EDGAR.The Company determined it was in the best interest of the shareholders to cancel the previously announce 2:1 forward share split. According to, Al French, the Chief Executive Officer of the Company, "This closing guarantees that the Company now has up to $5,000,000 to forge ahead on our aggressive exploration plans and to fund acquisition of additional exploration concession applications."