"i can,t see origianl oak sgx deal but was it not a deal where sgx had a carried interest in kerr,s with a back in option and basically all costs were up to oak to bear?"...
Yes it was... see below... just don't know what difference it makes now that property is completely sold.
red911
SAGE GOLD OPTIONS KERRS – PLANS TO DRILL
February 8, 2007
Sage Gold Inc announces a three year option agreement with Sheltered Oak
Resources Inc. (a private Ontario corporation, ‘OAK’) to earn an undivided 55%
interest in the Kerrs property and an undivided 100% interest in the Chibougamau
and Malartic properties.
In order to earn the interest in each property, OAK will pay cash and incur
exploration expenditures on each property over the term of the agreement as
follows:
Kerrs: $200,000 in cash plus $1,800,000 for Exploration Expenditures
Chibougamau: $105,000 in cash plus $265,000 for Exploration Expenditures
Malartic: $55,000 in cash plus $150,000 for Exploration Expenditures
On closing, OAK will issue SAGE 180,000 common shares in the capital of OAK
and grant SAGE the right to purchase by way of private placement 500,000
common shares of OAK at any time within a period of three years at a price of
$1.00 per share from the date on which the common shares are listed and trading
on a recognized Stock Exchange.
During the option period SAGE shall be the operator responsible for all
prospecting, exploration, development and mining operations of the Sage
properties and will receive a management fee equivalent to 15% of the Exploration
Expenditures. SAGE will have a “Back-in Option” which will allow Sage to maintain
operating and ownership control of the Kerrs property.
Nigel Lees, President and CEO, commented “We are very pleased with the
agreement with OAK and believe the relationship will be highly beneficial to both
parties. For Sage, we will manage the aggressive exploration program, maintain a
significant interest in the Kerrs gold project with back-in rights and a meaningful
share position in Sheltered Oak which plans to list on a Stock Exchange this year.
The first drill program (Spring 2007) is designed to test the up dip section of the
Kerrs Gold system in order to trace the high grade vein structures encountered in
recent drilling.”
The agreement is subject to a number of conditions including regulatory approval.
The Kerrs property comprises total leased and/or staked claims amounting to
approximately 18,883 acres and is located north of Kirkland Lake, Ontario. The
Kerrs Gold System consists of a gold bearing green carbonate zone that can be
traced for over 1,200 metres in strike length and down dip from 150m to 750m.
The system is open to depth from surface and along strike to the northeast.
The Quebec properties include the Malartic property (14 claims) and the
Chibougamau properties which include the Barlow property (15 claims) and the
Fancamp property (4 claims). All of the properties have had a significant amount of
historical work and Sage has completed compilation studies on the Barlow and
Malartic properties.
SAGE is a mineral exploration and development company which has interests in
exploration properties in Ontario and Quebec, Nevada and Arizona. Its main
properties are the, Onaman Jacobus and Kerrs properties in Ontario, the Dixie
Fork, Triple Junction, Pony Spur, Dike, properties situated in Nevada, and the Big
Bend gold property, located in Arizona. Technical reports relating to the properties
can be obtained from the System for Electronic Document Analysis and Retrieval
(SEDAR) website at www.sedar.com.
For further information, contact: Nigel Lees, President and C.E.O., or
Mike O’Brien, Manager/Investor Relations
Phone: 416-204-3170
Fax: 416-260-2243
- - - - - - - - - - - - - - - -
On behalf of the board of Directors
SAGE GOLD INC.
Nigel Lees, President and CEO
For further information contact:
(416) 204-3170 or by email at info@sagegoldinc.com
This release has been prepared by management – TSX Venture Exchange has not
reviewed and does not accept responsibility for the adequacy or accuracy of this news
release. This document contains certain forward looking statements which involve
known and unknown risks, delays, and uncertainties not under the Company’s control
which may cause actual results, performance or achievements of the Company to be
materially different from the results, performance or expectation implied by these
forward looking statements.
