UPDATE: San Gold Lower, Wildcat Moves Away From Yr Lows as They Sign Option Agreement
San Gold Corporation (SGR.TO) announced that it has signed an option agreement to earn an 80% interest in Wildcat Exploration Ltd.'s (WEL.V) Mike Power, Jeep, and Poundmaker gold exploration projects in the Rice Lake area of Manitoba.
Under the terms of the option agreement, San Gold may earn an 80% interest in the Wildcat Projects by expending $5.1 million on exploration activities over a four-year period. Additionally, 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 plans to complete a minimum drill program of 5,000 metres and a high-resolution airborne magnetic geophysical survey. An overview of the Wildcat Projects and a summary of recent exploration work conducted by Wildcat was presented in Wildcat's news release dated June 24, 2011.
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