StrikePoint Gold Completes Sale Of Certain Rice Lake Assets And Manitoba Ltd To San Gold Corporation

StrikePoint Gold Inc announced that it has completed the sale of certain assets located in the Rice Lake Gold Belt of Manitoba to San Gold Corporation. pursuant to the terms of a purchase agreement . The assets sold under the Agreement include 50 mining claims (covering 8,974 ha) North and West of the town of Bissett, Manitoba, including 26 mining claims (covering 3,595 ha) adjacent to San Gold's current gold mining operations at Bissett. The consideration for these claims was $2,300,000 and was paid by San Gold to StrikePoint through the issuance of 1,573,188 San Gold common shares at a deemed price of $1.462 per San Gold Common Share. The San Gold Common Shares issued as consideration to StrikePoint pursuant to the Transaction are subject to a hold period pursuant to applicable securities laws of four months and one day from the date of issuance of the San Gold Common Shares. In addition to the 50 mining claims described above, the Transaction also involved the sale to San Gold of StrikePoint's wholly-owned Manitoba subsidiary company, 6004903 Manitoba Ltd. (6004903), which holds title to real property and a house located in Bissett, Manitoba. The cash consideration paid by San Gold for the purchase of 6004903 was $125,000. Twenty six mineral claims sold to San Gold pursuant to the Agreement were subject to an option agreement between StrikePoint and San Gold. The Agreement terminates the option agreement described in the press release of January 15, 2010.