Press release from Marketwire
Wildcat Receives Option Payment from San Gold and Completes Private Placement
Thursday, September 29, 2011
WINNIPEG, MANITOBA--(Marketwire - Sept. 29, 2011) - Wildcat Exploration Ltd. (TSX VENTURE:WEL) today announced that, in accordance with the terms of an agreement dated August 9, 2011, it has received an initial option payment of $250,000 from San Gold Corporation ("San Gold") and has completed the private placement of shares to San Gold for $250,000.
In the private placement, five million common shares of Wildcat were issued at $0.05 per share. Under the terms of the agreement San Gold has an option to earn an 80% interest in Wildcat's Mike Power, Jeep, and Poundmaker gold exploration projects in the Rice Lake area of Manitoba (see news release dated August 10, 2011). In addition to the current cash payment and share subscription, San Gold must spend $5.1 million on exploration activities over a four-year period and make further cash payments to Wildcat totaling $750,000 and, subject to regulatory approval, subscribe for an aggregate of $750,000 of additional Wildcat shares via private placement over a three-year period. San Gold is the operator of the exploration program for the duration of the option agreement.
Wildcat CEO John Knowles stated, "I am very pleased that San Gold will be intensively exploring and advancing three of our gold properties in the Rice Lake camp. With an initial planned drill program of approximately 5,000 metres, we see this as an opportunity to enhance the chances for discovery of new gold resources on Wildcat's properties."
