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
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
visit the website atwww.canadianarrowmines.com, or contact Mr. Dean
MacEachern, CEO at (705) 673-8259.
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CO: Canadian Arrow Mines Limited
NI: MNG FIN FIELD
-0- Dec/02/2013 22:41 GMT
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