/THIS PRESS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES./
WINNIPEG, Sept. 8, 2011 /CNW/ - Hugh Wynne, Executive Chairman of SGX
Resources Inc. ("SGX"), is pleased to announce that SGX and San Gold
Corporation (collectively, the "Optionees") have entered into an option
agreement (the "Option Agreement") with Caroline Creighton and Charles
Creighton (collectively, the "Optionors") dated as of the date hereof.
Pursuant to the Option Agreement, the Optionors have provided the
Optionees with an option to acquire a 100% undivided interest in one
mineral claim (the "Property") held by the Optionors in Tully Township
in the Timmins, Ontario area.
Pursuant to the terms of the Option Agreement, the Optionees have the
option to earn a 100% undivided interest in the Property by making the
following aggregate cash payments and issuing the following aggregate
numbers of common shares of SGX ("Common Shares") to the Optionors: (i)
$40,000 cash and 40,000 Common Shares within 30 days from the date that
all conditions precedent in the Option Agreement are satisfied or
waived by the parties (the "Effective Date"); (ii) $60,000 and 60,000
Common Shares on or before the first anniversary of the Effective Date;
and (iii) $100,000 cash and 150,000 Common Shares on or before the
second anniversary of the Effective Date. The Optionors are also
required to incur the following exploration expenditures on the
Property: (i) at least $250,000 prior to the first anniversary of the
Effective Date; (ii) at least $400,000 by the second anniversary of the
Effective Date; and (iii) at least $500,000 prior to the third
anniversary of the Effective Date.
The Common Shares to be issued to the Optionors pursuant to the Option
Agreement will be issued by SGX. San Gold will reimburse SGX for 50% of
the deemed value of all Common Shares issued by SGX pursuant to the
Option Agreement. The cash payments and exploration expenditures on the
Properties will be split equally by SGX and San Gold.
Upon transfer of a 100% undivided interest in the Property from the
Optionors to the Optionees, the Optionors shall be entitled to an
aggregate 2.2% net smelter returns royalty on the Property. At such
time, the Optionors shall be entitled to purchase 1 % of such net
smelter royalty for $1,000,000.
SGX shall serve as the operator of the Property during the term of the
Option Agreement.
Neither the 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 the contents of
this News Release.