Canadian Arrow renegotiates option with San Gold

2013-12-02 14:55 PT - News Release

See News Release (C-CRO) Canadian Arrow Mines Ltd

Mr. Dean MacEachern of Canadian Arrow reports

CANADIAN ARROW RENEGOTIATES EXPLORATION OPTION WITH SAN GOLD

Canadian Arrow Mines Ltd. has entered into a purchase and sale agreement with San Gold Corp., providing for the purchase by San Gold of a 100-per-cent interest in 49 mineral claims in the Atikwa and Turtlepond regions located northeast of Rainy River, Ont. 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 1.75 million 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, pursuant to which San Gold holds an option to acquire an 80-per-cent 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 Canadian Arrow's Kenbridge or Alexo properties.

"This agreement allows Canadian Arrow to retain its interests in Kenbridge and Alexo nickel-copper projects while monetizing the Atikwa and Turtlepond properties. Canadian Arrow retains an option to back in on base metal discoveries made on the mineral claims under certain circumstances," said Dean MacEachern, Canadian Arrow's chief executive officer.

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 Canadian Arrow and San Gold will take place in the upcoming weeks.

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