TORONTO, Sept. 28 - Sheltered Oak Resources Corp. ("OAK"), through its 100% owned subsidiary Sheltered Oak Resources Inc. and Sage Gold Inc. ("Sage") announce that OAK has agreed to purchase a 100% interest in Sage's, unpatented claims and interests in the Larder Lake Mining District in Kerrs Township in the Abitibi Greenstone Belt of Ontario (the 'Kerrs Gold Property') pursuant to a Purchase Agreement between the companies (the 'Purchase Agreement').
In consideration thereof Sage will receive 2 million common shares of 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% Net Smelter Royalty ("NSR") on the Kerrs Gold Property of which 1% can be purchased from Sage by OAK at any time for$500,000. OAK will also pay to Sage an advance royalty payment of $125,000 , payable in five annual instalments with the first payment due twenty-four months following the Date of Closing of the Purchase Agreement. This agreement is subject to regulatory approval from the TSX-V 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, unpatented mining claim L1140877 (the 'Claim') lapsed and was staked in part by independent third parties. Sage has since reacquired approximately 50% of mining claims which restaked the area covered by the Claim. 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.
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For further information: Sheltered Oak Resources Corp.: Robert K. Hanson, Chief Executive Officer, Phone: (905) 847-6029, Fax: (905) 847-9575, Email: rhanson@shelteredoak.com; For OAK: CHF Investor Relations, Christopher Haldane, Phone: (416) 868-1079 ext. 237, Email: chris@chfir.com; Sage Gold Inc.: Nigel Lees, President & CEO, Phone: (416) 204-3170, Fax: (416) 260-2243, Email: nlees@sagegoldinc.com
