SUDBURY, ON, Dec. 2, 2013 /CNW/ - Canadian Arrow Mines, Ltd. (CRO: TSX-V) Canadian Arrow Mines Limited ("Arrow") today announced that it has
entered into a purchase and sale agreement (the "Purchase Agreement")
with San Gold Corporation (TSX: SGR) (OTCQX: SGRCF) ("San Gold")
providing for the purchase by San Gold of a 100% interest in 49 mineral
claims (the "Mineral Claims") in the Atikwa and Turtlepond regions
located northeast of Rainy River, Ontario. The Mineral Claims are
contiguous with and surround San Gold's Atikwa Project which includes
the past producing Maybrun copper-gold mine previously acquired from
Opawica Explorations Inc. As consideration for the Mineral Claims, San
Gold shall issue to Canadian Arrow 1,750,000 common shares of San Gold
and shall pay Canadian Arrow $150,000 in cash.
Canadian Arrow and San Gold are parties to an option agreement dated
June 25, 2012 (the "Option Agreement") pursuant to which San Gold holds
an option to acquire an 80% interest in all precious metals, including
but not limited to gold and silver but specifically excluding platinum
and palladium, on the Mineral Claims as well as certain other mineral
claims (including the Kenbridge and Alexo properties) in consideration
for undertaking certain exploration expenditures on the Mineral Claims
and the purchase of certain securities of Canadian Arrow. The Purchase
Agreement will replace the Option Agreement and upon closing of the
acquisition of the Mineral Claims by San Gold, the Option Agreement
will be of no further force or effect and San Gold will have no option
to earn an interest in precious metals discovered on Arrow's Kenbridge
or Alexo properties.
"This agreement allows Arrow to retain its interests in Kenbridge and
Alexo nickel-copper projects while monetizing the Atikwa and Turtlepond
properties. Arrow retains an option to back in on base metal
discoveries made on the Mineral Claims under certain circumstances,"
said Dean MacEachern, Arrow's CEO.
The sale of the Mineral Claims is subject to certain closing conditions
including all requisite regulatory approvals, including the approval of
the Toronto Stock Exchange in the case of San Gold. It is anticipated
that the closing of the sale and purchase of the Mineral Claims by
Arrow and San Gold will take place in the upcoming weeks.
Additional information relating to Canadian Arrow is available on SEDAR
This press release may contain "forward-looking statements" within the
meaning of the Canadian securities legislation and the United States
Private Securities Litigation Reform Act of 1995. These forward-looking
statements are made as of the date of this press release and the
Company does not intend, and does not assume, any obligation to update
these forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Canadian Arrow Mines Limited
For further information:
visit the website at www.canadianarrowmines.com, or contact Mr. Dean MacEachern, CEO at (705) 673-8259.