News release2009-09-17 08:43 ET - News Release
Mr. Dale Ginn reports
SAN GOLD CORPORATION / STRIKEPOINT GOLD INC. SAN GOLD AND STRIKEPOINT ENTER STRIKE POINT PROPERTY LETTER AGREEMENT SEPTEMBER 17, 2009
San Gold Corp. and StrikePoint Gold Inc. have entered into a letter agreement setting forth the terms and conditions of a transaction whereby San Gold can earn a 50-per-cent undivided interest in the Strike Point property that lies adjacent and to the north and northwest of San Gold's mining lease that contains the Rice Lake mine, the Cartwright deposit and the high grade gold Hinge mine and Cohiba Zones. Pursuant to the Letter Agreement the parties have agreed to negotiate a subsequent definitive option agreement (the "Option Agreement").
The Letter Agreement provides that San Gold shall pay StrikePoint Gold a refundable advance deposit (the "Advance Deposit") of $150,000 cash upon execution of the Letter Agreement. In addition, San Gold shall pay StikePoint Gold $50,000 cash on the first anniversary of the execution of the Letter Agreement and shall conduct $1,500,000 in exploration work on the property over three years at a minimum rates of $400,000, $500,000 and $600,000 per year, respectively, to earn a 50% undivided interest in the Strike Point property. The Advance Deposit shall be refunded by StrikePoint to San Gold in the event that the Option Agreement is not executed by December 31, 2009 or such other date that is agreeable to both parties.