FWIW I own both SGX and KXL... in almost equal amounts. This is kind of off-topic as it primarily concerns SGX but I am trying to make a case/discuss merits of SGX-KXL amalgamation... purely to spark some more discussion/thought...

I agree SGX has seemed to be on life support for some time now... 265 million shares out, very little cash, and little to show for 2009 BG exploration (relatively speaking)... as a pure exploration company the seemed to be in trouble... although remember they are second in land position in BG and do have a couple of NI 43-101's. That said, SGX seemed to recognize they needed to change focus as unless you have hit something truly spectacular (neither SGX or KXL have to date) pure exploration companies are not what the market is interested in right now. In addition to their BG exploration plays, SGX is now focused on acquiring properties with 'near-term production' and they proved that they are serious about it with the two recent option agreements they just signed... 60% Clavos, Timmins (for virtually nothing) and 50% Borealis, Nevada... Clavos had been placed on the back burner by SAS-t to direct limited funds to another Au producing mine and according to GGN-t CEO re: Borelais "Sage brings corporate and financial expertise required to advance the project, benefiting the shareholders of both companies."... Still wondering where the money is going to come from for both of these developments but there are hints that this may already be taken care of and GGN-t seems confident.

Consider 60% interest in Clavos, Timmins, acquired for virtually nothing... 113,434 metres drilled... production from mid-2005 until August 2006 totaled 98,125 tonnes grading 6.2 g/t gold or 19,563 ounces of gold this property produced gold until 2007... existing mining permit until 2019... $72-million has been invested, including $46-million on underground development.. existing infrastructure in place, including underground ramp access to the 300-metre level, underground levels developed every 25 metres, power to site, surface ventilation system and water management facility... IMO the geology of Clavos is alot like the Golden Mile and the mine development is lot like GM mine development will look like... point is... Clavos has already been developed with 'other people's money'... the time and money have been spent... One could argue with Clavos alone SGX now has a 'Golden Mile' of their own... but without having to spend anywhere near the time and money to re-start production... i.e. cash flow...

Not to mention Borealis... will require a little more money from SGX (again I have no idea from where) but GGN-t seems to be convinced SGX can deliver. This is a +300K oz Au deposit not to mention +3M oz Ag... 1M oz Au suphide resource... with lots of potential to expand...

Now enough about SGX... what's my point?... my point is that despite what SGX appears to be on the surface they do seem to have a management team that are attractive to companies who need that skill and expertise to take their projects to 'the next step'... IMO I don't think SGX would have done either of these deals if they did not already know when and where the money is going to come from... SGX fit wth KXL is almost too obvious... SGX has management skills that can complement KXL expertise and vice-versa... SGX has second largest BG land position to complement KXL's massive BG land position (many claims contiguous)... SGX now has two potential near-term cash-flow positive projects... KXL has cash...sounds like a good fit to me... would benefit shareholders of both companies IMO.

red911