TSX: SGR || OTCQX:SGRCF
BISSETT, MB, June 14, 2011 /PRNewswire/ - Mr. George Pirie, President and CEO of San Gold
Corporation (TSX: SGR) (OTCQX: SGRCF), is pleased to announce it
has entered into an option agreement with Cougar Minerals Corp.
(TSX-V: COU) to acquire an 80% interest in 18 mineral claims
comprising approximately 2,800 hectares near Bissett.
The properties are adjacent to San Gold's
properties to the east and south of the SG#1 deposit.
As part of the agreement, San Gold is required
to undertake the following expenditures on the Properties: (i)
$200,000 on or before the first
anniversary of the option agreement; (ii) $300,000 on or before the second anniversary of
the option agreement; (iii) $400,000
on or before the third anniversary of the option agreement; and
(iv) $600,000 on or before the fourth
anniversary of the option agreement. During the term of the option
agreement, San Gold shall be the operator.
In addition, the Company is required to
subscribe for a private placement of $200,000 units of Cougar immediately following
execution of the Option Agreement and an additional $200,000 units of Cougar on or before each of the
first, second and third anniversaries of the Option Agreement. Each
unit will be comprised of one common share of Cougar and one common
share purchase warrant of Cougar exercisable for a period of two
years from the date of issuance. The price of the units and the
exercise price of the warrants will be equal to the market price of
the common shares of Cougar as at the date of announcement of the
applicable unit offering, subject to applicable regulatory
policies. All amounts are in Canadian dollars.
Upon San Gold fulfilling all of the above
obligations, it will earn an 80% interest in the Properties.
Neither the Toronto Stock Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the Toronto Stock Exchange) accepts responsibility for
the adequacy or accuracy of this release. The information in this
release may contain forward-looking information under applicable
securities laws. This forward-looking information is subject to
known and unknown risks, uncertainties and other factors that may
cause actual results to differ materially from those implied in the
forward-looking information.
SOURCE San Gold Corporation
