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Santa Fe Metals Announces Completion of Private Placement

May 08, 2009

Vancouver, BC:  The Company is pleased to announce that it has completed the non-brokered private placement referred to in its April 22, 2009 news release.   The offering was oversubscribed, from the originally announced 10 million shares to 10,470,000 shares at $0.05 per share for gross proceeds of $523,500.  Finder's fees of $6,375 were paid in connection with the placement of 2,550,000 shares.  Proceeds from the offering will be used primarily for general working capital purposes and to pursue growth opportunities.  The shares are subject to a hold period expiring September 7, 2009.

Directors and management of the Company subscribed for 1,970,000 shares, or 18.8% of the offering.  In addition, as announced separately, Pinetree Capital Ltd. subscribed for two million shares, increasing its holding to three million shares.

About Santa Fe Metals Corp.

Santa Fe Metals Corp. is a diversified base and precious metals explorer with near-term copper production plans on its Cuatro Ciénegas property.  Underground development and leaching operations are scheduled to commence in November 2009.  The Company continues exploring its 20,000Ha Lobos property where surface mapping, sampling and diamond drilling over the past 18 months have identified precious metal and polymetallic targets both in hydrothermal breccias and limestones.  Exploration activities in the Lobos limestone formation over a strike length of 6km on the northern side of the concession have identified silver, antimony and mercury mineralization, indicator minerals for the presence of Carbonate Replacement Deposits ("CRDs") at depth.

CRDs are highly desirable mining targets of which Mexico has many examples.  Typically these form as chimneys with tonnages in the 10-13Mt range and grades of 2-20%+ combined lead and zinc, 60-600 g/t silver, trace to 2% copper and trace to 6g/t gold[1].  The company intends to conduct a geophysics program to identify targets for subsequent diamond drilling.

The Company's management team and board of directors have over 200 years of combined industry experience, with numerous well-known success stories to their credit.  Further information is available on the Company's website www.santafemetals.com.

SANTA FE METALS CORP.

Ian Smith

President & CEO

For further information contact Ian Smith:

Telephone: 604.678.8823 ext. 1
e-mail:        info@santafemetals.com
website:     www.santafemetals.com

 

The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

This release contains forward-looking statements, including statements relating to Santa Fe Metals' future plans and objectives with respect to the exploration of the Lobos and Cuatro Ciénegas properties.  Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in Santa Fe Metals' business, including risks inherent in resource exploration and development.  There can be no assurance that an economic resource will be developed at either property.  Actual results may vary materially from those described in forward-looking statements.


[1] CARBONATE-HOSTED Pb-Zn-Ag-Cu-Au REPLACEMENT DEPOSITS: AN EXPLORATION PERSPECTIVE;  Peter K.M. Megaw, PhD 1998.