Slate Grocery REIT T.SGR

San Gold to option interest in Strikepoint propert

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San Gold to option interest in Strikepoint property

2010-01-15 21:07 ET - News Release

Also News Release (C-SKP) Strikepoint Gold Inc

Mr. Dale Ginn of San Gold reports

SAN GOLD AND STRIKEPOINT ENTER INTO STRIKE POINT PROPERTY OPTION AGREEMENT

San Gold Corp. and Strikepoint Gold Inc. have entered into a definitive option agreement as contemplated by a letter agreement between the parties dated Sept. 16, 2009, described in a joint press release of San Gold and Strikepoint Gold in Stockwatch dated Sept. 17, 2009.

Pursuant to the terms of the option agreement San Gold has the option to earn a 50-per-cent undivided interest in the Strikepoint Gold property comprising approximately 3,595 hectares situated in southeast Manitoba. The option agreement provides that San Gold shall pay Strikepoint Gold $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, to earn a 50-per-cent undivided interest in the property. The option agreement provides Strikepoint Gold 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.

The option agreement provides that when San Gold has earned its 50-per-cent interest, both parties shall become working parties, each responsible for 50 per cent of expenditures. Each of San Gold and Strikepoint Gold 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.

The entering into of the option agreement is a reviewable transaction as defined in TSX Venture Exchange Policy 5.3 since Richard A. Boulay and Courtney Shearer are directors and officers of Strikepoint Gold and directors of San Gold. The final closing of the transaction is subject to the approval of the TSX Venture Exchange.