Canadian Arrow $0.5m financing and property option agreement with San Gold Corporation
June 27 2012 - 8:30AM
PR Newswire (Canada)
SUDBURY, ON, June 27, 2012 /CNW/ - Canadian Arrow Mines Limited
(the "Company") is pleased to report that it has entered into an
option agreement (the "Agreement") with San Gold Corporation ("San
Gold") whereby the Company has agreed to grant San Gold the option
to acquire an 80% undivided interest in all precious metals
including, but not limited to, gold and silver but specifically
excluding platinum and palladium (the "Precious Metals"), contained
on it's current properties. The rights to all other mineral
resources including, but not restricted to, base metals, platinum
and palladium remains with Canadian Arrow. Mr. Kim Tyler,
President, said, "We are very pleased that San Gold has agreed to
invest exploration expenditures in our mineral properties and in
our Company directly through the equity placement. This represents
an aggregate $2,000,000 investment in the Company. Many
unexplored exploration targets and geophysical anomalies on our
properties are prospective for both base metal and precious metal
potential." To maintain the Agreement in good standing and earn an
80% interest in the Precious Metals contained on the properties,
San Gold has agreed to, among other things, purchase 5,000,000
units of the Company at a price of $0.10 per unit. Each unit will
be comprised of one common share in the capital of the Company and
a ½ of one share purchase warrant. Each full warrant will entitle
San Gold to purchase one common share in the capital of the Company
for an exercise price of $0.20 for a period up to two years from
the date of the issuance of the warrant. The securities
issued in connection with the unit offering are subject to a four
month hold period that will expire on October 26, 2012. In addition
San Gold is also required to incur an aggregate $1,500,000 in
expenditures on the properties graduated over four years from the
date of execution of the Agreement. Upon completion of San Gold's
obligations under the Agreement, San Gold will earn an 80% interest
in all Precious Metals contained on the properties and a joint
venture will be formed between San Gold and the Company. Initial
ownership in the joint venture will be San Gold 80% and Canadian
Arrow 20%. Kelex Production Update: Pre-production work has been
progressing well on the Kelex project. De-watering of the
West and Central West pits is now complete. Overburden
stripping in advance of production is approximately 50% complete.
The information in this release was prepared under the direction of
Mr. R. Kim Tyler, P. Geo., President of the Company, a Qualified
Person as defined by NI 43-101. About Canadian Arrow Mines: The
Company is resuming production on its past producing Alexo nickel
complex located in the Abitibi nickel district east of Timmins
Ontario. The Alexo and Kelex mines have historically produced
87,000 tonnes averaging 3.06% nickel from both underground and open
pit mining. The Company is also developing its flagship
Kenbridge nickel/copper/cobalt project located near Kenora,
Ontario. Exploration potential exists along strike and at depth on
both projects. 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.
Canadian Arrow Mines Limited CONTACT: visit the website at
www.canadianarrowmines.ca, or contact Mr. R.KimTyler President and
Director toll free, 1-877-673-5462.
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