Jul 18 2013
Wildcat Exploration Ltd. is pleased to announce that it has agreed to sell three of its four exploration properties in the Rice Lake, MB area to San Gold Corporation ("San Gold"). The three properties, Poundmaker, Mike Power and Jeep (the "Properties"), were under option to San Gold pursuant to an August, 2011 agreement, and were nearing the end of the second year of the option.
Consideration for the sale includes $200,000 cash, $250,000 of shares in San Gold (subject to regulatory approval) and a 2% net smelter returns royalty payable on any future production from the Properties. San Gold will pay a further $250,000 to Wildcat over ten years as an advance royalty. The agreement also provides for a $1 million payment to Wildcat if 500,000 oz or more of gold resources on the Properties are confirmed in a NI 43-101 compliant technical report within four years following the closing date. San Gold has undertaken to complete the exploration expenditure requirements under the second year of the option agreement and then to make $100,000 of exploration expenditures per year during the four years following closing.
In the Rice Lake area Wildcat has retained the Siderock property, comprising 25 claims (4,249 hectares) approximately 2.5 km east of the eastern Jeep property boundary and 28 km east of Bissett, MB.
"This deal gives us continued upside exposure in the Rice Lake camp through the royalty, shares of San Gold and success payment." commented John Knowles, Wildcat's President and CEO. "At the same time, the cash, shares and advance royalty payments improve our ability to pursue opportunities with other partners."
About Wildcat
Wildcat Exploration Ltd. is a Winnipeg-based company exploring for gold and base metals in Canada. It manages exploration on its own properties in Ontario, Manitoba and Saskatchewan and has prepared drill programs for its Burntwood MB project (gold, nickel), Reed Lake MB project (copper, zinc) and McVicar ON project (gold), which are subject to availability of partners or other funding sources. In addition, Wildcat is the manager of the Wildcat - Doe Run Canadian Exploration Alliance which is exploring in New Brunswick for base metal deposits.
Source: http://www.wildcatexploration.com/