San Gold Acquires Mineral Claims from Strikepoint Gold Inc.
WINNIPEG, MANITOBA -- (Marketwire) -- 06/07/12 -- George Pirie, President and CEO of San Gold Corporation (TSX: SGR)(OTCQX: SGRCF) ("San Gold"), today announced that San Gold has acquired a total of 50 mineral claims (covering 8,974 ha) located in the Rice Lake area of Manitoba from Strikepoint Gold Inc. ("Strikepoint"). In addition, San Gold has acquired all the shares of 6004903 Manitoba Ltd. ("Numco"), a wholly-owned subsidiary of Strikepoint, whose sole business is the ownership of certain real property and a house in Bissett, Manitoba. The consideration paid by San Gold for the mineral claims and all the shares of Numco is 1,573,188 common shares of San Gold at a deemed price of $1.462 per share and $125,000 in cash. The transaction was completed pursuant to a purchase agreement dated as of the date hereof between San Gold and Strikepoint.
Following a re-evaluation of prior work, San Gold intends to actively explore these newly acquired properties with the view to developing such properties.
The property acquired from Strikepoint is currently subject to an option agreement between Strikepoint and San Gold which has now been terminated.
The sale of the mineral claims and shares of Numco by Strikepoint to San Gold is subject to the final approval of the Toronto Stock Exchange.
About San Gold
San Gold is an established Canadian gold producer, explorer, and developer that owns and operates the Hinge, 007, and Rice Lake mines near Bissett, Manitoba. San Gold employs more than 400 people and is committed to the highest standards of safety and environmental stewardship. San Gold is on the Toronto Stock Exchange under the symbol "SGR" and on the OTCQX under the symbol "SGRCF".
For further information on San Gold, please visit www.sangold.ca.
Cautionary Note
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release includes certain "forward-looking statements". All statements, other than statements of historical fact included in this release, including, without limitation, statements regarding forecast gold production, gold grades, recoveries, cash operating costs, potential mineralization, mineral resources, mineral reserves, exploration results, and future plans and objectives of the Company, are forward-looking statements that involve various risks and uncertainties. These forward-looking statements include, but are not limited to, statements with respect to mining and processing of mined ore, achieving projected recovery rates, anticipated production rates and mine life, operating efficiencies, costs and expenditures, changes in mineral resources and conversion of mineral resources to proven and probable mineral reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ from those reflected in the forward-looking statements.
There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include, among others, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of precious metals, as well as those factors discussed in the section entitled "Other MD&A Requirements and Additional Disclosure and Risk Factors" in the Company's most recent quarterly Management's Analysis and Discussion ("MD&A"). Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Contacts:
San Gold Corporation
George Pirie
President and CEO
1 (416) 214-0024
San Gold Corporation
Tim Friesen
Communications Director
1 (855) 585-4653
www.sangold.ca