Harvest Gold to sell CUD 3 to San Gold for $225,000

2012-07-17 05:20 MT - News Release

See News Release (C-HVG) Harvest Gold Corp

Mr. Rick Mark of Harvest reports

HARVEST SELLS CUD 3 CLAIM TO SAN GOLD CORP.

Harvest Gold Corp. has reached terms with San Gold Corp. to sell its CUD 3 claim. The CUD 3 claim is located in the Rice Lake gold belt, 250 kilometres northeast of Winnipeg, Man., where San Gold is now producing gold at the Rice Lake mine in Bissett.

The terms of the agreement are that San Gold will acquire 100 per cent of the CUD 3 claim in return for a payment of $225,000 to Harvest Gold and that San Gold will pay the further sum of $225,000 if and when any gold is produced from the CUD 3 claim.

Rick Mark, chief executive officer of Harvest, states: "We are very pleased with the transaction as it completes our transition out of the Rice Lake belt. We have basically recovered our exploration costs and have put the claim in the right hands. San Gold's team is motivated and very capable and we hope they will be successful in adding ounces to their Rice Lake package of properties. Harvest will now focus on acquiring gold projects in areas where larger prospective land packages and/or more advanced projects can be acquired, explored and developed."