WINNIPEG, MANITOBA--(Marketwire - Dec. 7, 2012) - Wildcat Exploration Ltd. (TSX VENTURE:WEL) is pleased to announce that, subject to regulatory approval, it has completed a non-brokered private placement of shares to San Gold Corporation ("San Gold") for proceeds of $250,000, pursuant to renewal of the option of three properties in the Rice Lake gold camp to San Gold (see news release August 30, 2012).
The option agreement with San Gold provides for private placements of $250,000 as part of the consideration for annual renewal (see news release dated August 10, 2011). The shares issued to San Gold were priced at $0.20 per share.
Wildcat's Jeep, Mike Power and Poundmaker properties are under option to San Gold whereby San Gold can earn an 80% interest in the properties by carrying out $5.1 million of exploration expenditures over 4 years and making cash payments of $1 million in total and subscribing to $1 million of Wildcat shares. The current private placement completes the requirements for the renewal of the option for a second year.
Commenting on the renewal of the option, Tom Lewis, Wildcat's V.P. Exploration, said, "Recent discussions with San Gold on the exploration approach for our properties near San Gold's mining operations have been productive and we look forward to the results of this winter's aggressive drilling program."
The private placement follows completion of the share consolidation on the basis of twenty old common shares for each new common share, previously approved by Wildcat's shareholders (see news release dated November 9, 2012). The exercise price and number of common shares issuable under any of Wildcat's outstanding warrants and options are proportionately adjusted upon the consolidation. The consolidation has been approved by the TSX Venture Exchange (the "Exchange") and it is anticipated that the new common shares will start trading on the Exchange on the date of this release, Friday November 7, 2012.
Wildcat Exploration Ltd. is a Winnipeg-based company exploring for gold and base metals in Canada. Its portfolio includes: (1) the Jeep, Mike Power and Poundmaker gold properties under option to San Gold Corporation, together with two additional gold exploration properties in the Rice Lake greenstone belt in Manitoba, (2) the McVicar gold property in the Uchi subprovince of Ontario, (3) the Reed Lake base metal property in the Flin Flon-Snow Lake greenstone belt in Manitoba, (4) the Burntwood property in the Thompson Nickel Belt in Manitoba and (5) the Foster zinc-lead-silver property in Saskatchewan. The Company seeks to continuously upgrade its property portfolio through exploration and accretive transactions.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release may contain "forward-looking information", within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to Wildcat's exploration program and plans. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "believes", "plans", "seeks", "expects", "budget" or variations of such words or statements that certain actions, events or results may, could, will, will be, would be or are expected to be. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Wildcat to be materially different from those expressed or implied by such forward-looking information. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Wildcat does not undertake to update any forward- looking information, except in accordance with applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy and accuracy of this release.