SOURCE: San Gold Corporation

San Gold Corporation

January 22, 2010 09:00 ET

San Gold Corporation Announces Closing of Acquisition of Timmins Property and Issuance of Options

BISSETT, MB--(Marketwire - January 22, 2010) - Dale Ginn, CEO of San Gold Corporation ("San Gold") (TSX-V: SGR) is pleased to announce that San Gold has closed its previously announced acquisition of all of the property interests of Laurion Mineral Exploration Inc. ("Laurion") in Tisdale Township, in the Timmins, Ontario mining camp in consideration of the payment of $1,000,000 and the issuance of 1,000,000 common shares of San Gold to Laurion. The Tisdale Township properties consist of a 31.5% ownership in the Davidson-Tisdale property and a 100% interest in the North Tisdale property as well as certain surface rights (collectively, the "Assets"). The purchase of the Davidson-Tisdale property is outright and free of any royalty while Laurion will retain a 2% net smelter royalty on the North Tisdale property. The remaining 68.5% of the Davidson-Tisdale property is currently owned by VG Gold Corp.

Following a reevaluation of prior work, San Gold intends to actively explore these newly acquired properties with the view to developing the Davidson-Tisdale property following the negotiation of a joint venture agreement with VG Gold Corp.

The payment to Laurion of $1,000,000 and 1,000,000 common shares of San Gold are being held in escrow pending the formal registration of the transfer of the Assets to San Gold.

The sale of the Assets by Laurion to San Gold is subject to the final approval of the TSX Venture Exchange (the "Exchange").

The Corporation also announced the issuance of 3,125,000 incentive stock options ("Options") to purchase its common shares, exercisable at $3.45 per common share, to approximately 48 directors, officers, employees and consultants of the Corporation. The Options have been issued pursuant to the Corporation's stock option plan.

The issuance of the Options is subject to the approval of the TSX Venture Exchange. If the issuance of the Options is approved by the Exchange, the Options will be subject to a minimum hold period of 4 months and one day in accordance with applicable securities laws and applicable policies of the Exchange.

For further information contact Dale Ginn, Chief Executive Officer of San Gold Corporation, at (204) 794-5818 or investor information at 1-800-321-8564 or visit

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Contact:
    Dale Ginn
    Chief Executive Officer
    San Gold Corporation
    (204) 794-5818

    Investor Information: