San Gold (SGR.TSX) announced that it has signed an option agreement to earn an 80% interest in Wildcat Exploration’s Mike Power, Jeep, and Poundmaker gold exploration projects in the Rice Lake area of Manitoba, Canada. Under the terms of the option agreement, San Gold may earn an 80% interest in the Wildcat Projects by spending $5.1 million on exploration activities over a four-year period.5
* San Gold will be required to make cash payments to Wildcat in aggregate of $1.0 million and, subject to regulatory approval, subscribe for an aggregate of $1.0 million of Wildcat shares via private placement over a three-year period.
* San Gold will be the operator of the exploration program for the duration of the option agreement.
* During the first year exploration program, San Gold intends to complete a minimum drill program of 5,000 meters and a high-resolution airborne magnetic geophysical survey.
George Pirie, President and CEO of San Gold:
“This option agreement expands San Gold’s property interests in the very prospective Rice Lake area in close proximity to our existing mining operations. Recent work conducted by Wildcat has identified an initial inventory of drill-ready targets and we are confident that we will identify additional drill targets through our initial exploration program.”
John Knowles, Wildcat’s President and CEO:
“By partnering with San Gold, with its nearby mill and proven mining and exploration teams, we have reduced the economic hurdle to advance our properties while accelerating the exploration of three projects in the vicinity of San Gold’s Rice Lake Project.”