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 at www.sedar.com
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.