SGX Resources, San Gold to acquire Ontario claim

2011-09-08 14:19 PT - News Release

See News Release (C-SXR) SGX Resources Inc

Mr. Hugh Wynne of SGX Resource reports

SGX RESOURCES INC. ENTERS INTO OPTION AGREEMENT

SGX Resources Inc. and San Gold Corp. have entered into an option agreement with Caroline Creighton and Charles Creighton dated as of the date hereof. Pursuant to the option agreement, the optionors have provided the optionees with an option to acquire a 100-per-cent undivided interest in one mineral claim held by the optionors in Tully township in the Timmins, Ont., area.

Pursuant to the terms of the option agreement, the optionees have the option to earn a 100-per-cent undivided interest in the property by making the following total cash payments and issuing the following total numbers of common shares of SGX to the optionors: (i) $40,000 cash and 40,000 common shares within 30 days from the date that all conditions precedent in the option agreement are satisfied or waived by the parties; (ii) $60,000 and 60,000 common shares on or before the first anniversary of the effective date; and (iii) $100,000 cash and 150,000 common shares on or before the second anniversary of the effective date. The optionors are also required to incur the following exploration expenditures on the property: (i) at least $250,000 prior to the first anniversary of the effective date; (ii) at least $400,000 by the second anniversary of the effective date; and (iii) at least $500,000 prior to the third anniversary of the effective date.

The common shares to be issued to the optionors pursuant to the option agreement will be issued by SGX. San Gold will reimburse SGX for 50 per cent of the deemed value of all common shares issued by SGX pursuant to the option agreement. The cash payments and exploration expenditures on the properties will be split equally by SGX and San Gold.

Upon transfer of a 100-per-cent undivided interest in the property from the optionors to the optionees, the optionors shall be entitled to a total 2.2-per-cent net-smelter-return royalty on the property. At such time, the optionors shall be entitled to purchase 1 per cent of such net smelter royalty for $1-million.

SGX shall serve as the operator of the property during the term of the option agreement.