Business
San Gold and StrikePoint enter Strike Point Property Letter Agreement
San Gold and StrikePoint enter Strike Point Property Letter Agreement
About this update from Strikepoint Gold Inc.
[{"type":"text","content":"\n\n\n\nSep. 17, 2009 (Canada NewsWire Group) -- CALGARY, Sept. 17 /CNW/ -- Dale Ginn, CEO of San Gold Corporation (\"San Gold\") and Richard Boulay, CEO of StrikePoint Gold Inc.(\"StrikePoint Gold\") (collectively, the \"Parties\") are pleased to announce that San Gold and StrikePoint Gold have entered into a letter agreement (the \"Letter Agreement\") setting forth the terms and conditions of a transaction (the \"Option\") whereby San Gold can earn a 50% 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.StrikePoint Gold will be the operator of the project subject to a standard joint venture operating committee structure. StrikePoint Gold shall have the right to accelerate exploration by spending its own funds and an amount equal to such expenses shall be added to San Gold's work requirement for the year in which they are expended. When San Gold has earned its 50% interest, both parties shall become working parties, each responsible for 50% of expenditures, subject to standard dilution provisions. San Gold and StrikePoint Gold shall each have 90 days to remedy any shortfall to prevent dilution. Each Party to the Option Agreement shall have a first right of refusal to purchase the other Party's interest. San Gold and StrikePoint Gold will agree that no Party shall purchase any common shares of the o...