SUDBURY, ON,
Dec. 2, 2013 /CNW/ - Canadian
Arrow Mines, Ltd. (CRO: TSX-V) Canadian Arrow Mines Limited
("Arrow") today announced that it has entered into a purchase and
sale agreement (the "Purchase Agreement") with San Gold Corporation
(TSX: SGR) (OTCQX: SGRCF) ("San Gold") providing for the purchase
by San Gold of a 100% interest in 49 mineral claims (the "Mineral
Claims") in the Atikwa and Turtlepond regions located northeast of
Rainy River, Ontario. The Mineral
Claims are contiguous with and surround San Gold's Atikwa Project
which includes the past producing Maybrun copper-gold mine
previously acquired from Opawica Explorations Inc. As consideration
for the Mineral Claims, San Gold shall issue to Canadian Arrow
1,750,000 common shares of San Gold and shall pay Canadian Arrow
$150,000 in cash.
Canadian Arrow and San Gold are parties to an
option agreement dated June 25, 2012
(the "Option Agreement") pursuant to which San Gold holds an option
to acquire an 80% interest in all precious metals, including but
not limited to gold and silver but specifically excluding platinum
and palladium, on the Mineral Claims as well as certain other
mineral claims (including the Kenbridge and Alexo properties) in
consideration for undertaking certain exploration expenditures on
the Mineral Claims and the purchase of certain securities of
Canadian Arrow. The Purchase Agreement will replace the Option
Agreement and upon closing of the acquisition of the Mineral Claims
by San Gold, the Option Agreement will be of no further force or
effect and San Gold will have no option to earn an interest in
precious metals discovered on Arrow's Kenbridge or Alexo
properties.
"This agreement allows Arrow to retain its
interests in Kenbridge and Alexo nickel-copper projects while
monetizing the Atikwa and Turtlepond properties. Arrow retains an
option to back in on base metal discoveries made on the Mineral
Claims under certain circumstances," said Dean MacEachern, Arrow's CEO.
The sale of the Mineral Claims is subject to
certain closing conditions including all requisite regulatory
approvals, including the approval of the Toronto Stock Exchange in
the case of San Gold. It is anticipated that the closing of the
sale and purchase of the Mineral Claims by Arrow and San Gold will
take place in the upcoming weeks.
Additional information relating to Canadian
Arrow is available on SEDAR at www.sedar.com
This press release may contain "forward-looking
statements" within the meaning of the Canadian securities
legislation and the United States
Private Securities Litigation Reform Act of 1995. These
forward-looking statements are made as of the date of this press
release and the Company does not intend, and does not assume, any
obligation to update these forward-looking statements.
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Canadian Arrow Mines Limited