San Gold agreement for StrikePoint property
Ticker Symbol: C:SGR

San Gold agreement for StrikePoint property

San Gold Corp (C:SGR)
Shares Issued 268,265,093
Last Close 2/8/2010 $3.48
Tuesday February 09 2010 - Property Agreement

The TSX Venture Exchange has accepted for filing an option agreement dated Jan. 15, 2010, between Strikepoint Gold Inc. and San Gold Corp. The company has paid $150,000 for the option to earn a 50-per-cent undivided interest in the StrikePoint property comprising approximately 3,595 hectares situated in southeast Manitoba. To earn its interest the company shall pay Strikepoint $50,000 cash on the first anniversary of the execution of the letter agreement and shall conduct a total minimum of $1.5-million in exploration work on the property over three years at a minimum rate of $400,000, $500,000 and $600,000 per year, respectively. The option agreement provides Strikepoint with the ability to unilaterally accelerate the spending on exploration work on the property up to an additional maximum of $500,000 per year, calculated from the date of the letter agreement.

When the company has earned its 50-per-cent interest, both parties shall become working parties, each responsible for 50 per cent of expenditures. Each of the company and Strikepoint has a first right of refusal to purchase the other party's interest in the property. The option agreement also provides that neither party shall purchase any common shares of the other party, without the approval of the board of directors of each of party, during the term of the option agreement or for a period of two years following the termination of the option agreement.

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