December 07, 2012 09:01 ET
Wildcat Reports Private Placement to San Gold following Completion of Share Consolidation
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. |
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