San Gold Announces Option Agreement with Cougar Minerals
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