Sheltered Oak to buy Larder Lake claims from Sage
2009-09-28 15:43 ET - News Release
See News Release (C-OAK) Sheltered Oak Resources Corp
Mr. Robert Hanson of Sheltered Oak reports
OAK TO PURCHASE 100% INTEREST IN THE KERRS GOLD PROPERTY FROM SAGE
Sheltered Oak Resources Corp., through its 100-per-cent-owned subsidiary Sheltered Oak Resources Inc., has agreed to purchase a 100-per-cent interest in Sage Gold Inc.'s unpatented claims and interests in the Larder Lake mining district in Kerrs township in the Abitibi greenstone belt of Ontario pursuant to a purchase agreement between the companies.
In consideration thereof Sage will receive two million common shares of Sheltered Oak and $500,000 in cash to be paid to Sage 12 months following the date of closing of the purchase agreement.
Sage will receive a 2-per-cent net smelter royalty on the Kerrs gold property, of which 1 per cent can be purchased from Sage by Sheltered Oak at any time for $500,000. Sheltered Oak will also pay to Sage an advance royalty payment of $125,000, payable in five annual instalments, with the first payment due 24 months following the date of closing of the purchase agreement.
This agreement is subject to regulatory approval from the TSX Venture Exchange and transfers of portions of the properties are subject to the consent of the Ministry of Northern Development, Mines and Forestry (Ontario) and various individuals and corporations which may have interests in the claims and leases. When the approvals are received, announcements will be made and posted on SEDAR.
As previously disclosed in Stockwatch on July 10, 2009, unpatented mining claim L1140877 lapsed and was staked in part by independent third parties. Sage has since reacquired approximately 50 per cent of mining claims which restaked the area covered by the claim. Sheltered Oak is in discussions with a third party with a view to settling outstanding issues in relation to other claims restaked in the area covered by the claim.
