WINNIPEG, MANITOBA--(Marketwired - July 17, 2013) - Wildcat Exploration Ltd. (News - Market indicators) is pleased to announce that it has agreed to sell three of its four exploration properties in the Rice Lake, MB area to San Gold Corporation ("San Gold"). The three properties, Poundmaker, Mike Power and Jeep (the "Properties"), were under option to San Gold pursuant to an August, 2011 agreement, and were nearing the end of the second year of the option.
Consideration for the sale includes $200,000 cash, $250,000 of shares in San Gold (subject to regulatory approval) and a 2% net smelter returns royalty payable on any future production from the Properties. San Gold will pay a further $250,000 to Wildcat over ten years as an advance royalty. The agreement also provides for a $1 million payment to Wildcat if 500,000 oz or more of gold resources on the Properties are confirmed in a NI 43-101 compliant technical report within four years following the closing date. San Gold has undertaken to complete the exploration expenditure requirements under the second year of the option agreement and then to make $100,000 of exploration expenditures per year during the four years following closing.
In the Rice Lake area Wildcat has retained the Siderock property, comprising 25 claims (4,249 hectares) approximately 2.5 km east of the eastern Jeep property boundary and 28 km east of Bissett, MB.
"This deal gives us continued upside exposure in the Rice Lake camp through the royalty, shares of San Gold and success payment," commented John Knowles, Wildcat's President and CEO. "At the same time, the cash, shares and advance royalty payments improve our ability to pursue opportunities with other partners."
About Wildcat
Wildcat Exploration Ltd. is a Winnipeg-based company exploring for gold and base metals in Canada. It manages exploration on its own properties in Ontario, Manitoba and Saskatchewan and has prepared drill programs for its Burntwood MB project (gold, nickel), Reed Lake MB project (copper, zinc) and McVicar ON project (gold), which are subject to availability of partners or other funding sources. In addition, Wildcat is the manager of the Wildcat - Doe Run Canadian Exploration Alliance which is exploring in New Brunswick for base metal deposits.
For further information on Wildcat, please visit www.wildcat.ca.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy and accuracy of this release.
Cautionary Note
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release may contain "forward-looking information", within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to Wildcat's exploration program and plans. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "believes", "plans", "seeks", "expects", "budget" or variations of such words or statements that certain actions, events or results may, could, will, will be, would be or are expected to be. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Wildcat to be materially different from those expressed or implied by such forward-looking information. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Wildcat does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
