Dale Ginn: “There were a couple of reasons for creating the SGX subsidiary for the Timmins exploration properties. We wanted to make it clear to shareholders that we (especially myself) were maintaining our focus on Rice Lake development and exploration. We as San Gold are the largest shareholder of SGX and have kept a right of first refusal on the SGX properties for the next five years, so we have a lock on any of their potential exploration success. SGX will raise and manage its own finances so will not be dilutive to San Gold shareholders. In case of any further potential acquisitions of advanced properties, we now have a vehicle with the capability to house and manage additional grassroots exploration properties that may be attached, maximizing their hidden value.”