WINNIPEG - SGX Resources Inc. (TSXV:SXR) will acquire interests in two mineral properties in the Timmins area of northern Ontario under a proposed related-party deal with San Gold Corp (TSX:SGR), valued at $4 million.
SGX was formerly a wholly owned subsidiary of San Gold and San Gold's founder, Hugh Wynne, is executive chairman of SGX. After the transaction, San Gold will increase its share of SGX to 39.49 per cent from 33.36 per cent.
The companies announced the deal in a joint statement Friday evening.
Under the deal, SGX will issue about eight million shares, deemed to be worth 50 cents each, to acquire the properties in Tisdale Township.
San Gold initially acquired its interest in the properties from Laurion Mineral Exploration Inc. in January 2010 but has not undertaken any exploration or development work on them since that date.
SGX will acquire 100 per cent ownership of 15 mineral claims known as the North Tisdale Property and 31.5 per cent of 12 mineral claims known as the Davidson-Tisdale Property. The remainder of the Davidson-Tisdale property is owned by Lexam VG Gold Inc. (TSX:LEX).
© The Canadian Press, 2012