San Gold Corporation signed a purchase and sale agreement to acquire a100% interest in 49 mineral claims in the Atikwa and Turtlepond regions from Canadian Arrow Mines Limited for CAD 0.36 million.

San Gold Corporation (TSX:SGR) signed a purchase and sale agreement to acquire a 100% interest in 49 mineral claims in the Atikwa and Turtlepond regions from Canadian Arrow Mines Limited (TSXV:CRO) for CAD 0.36 million on December 2, 2013. As consideration, San Gold shall issue to Canadian Arrow 1.8 million common shares of San Gold and shall pay Canadian Arrow CAD 0.15 million in cash. Canadian Arrow and San Gold signed an option agreement dated June 25, 2012, pursuant to which San Gold holds an option to acquire an 80% interest in all precious metals, including 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. 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.

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. The deal is expected to close in the upcoming weeks.