SAGD filing to support recent 8K http://www.otcmar
Post# of 99169
Posted On: 09/24/2012 11:37:09 AM
SAGD filing to support recent 8K http://www.otcmarkets.com/edgar/GetFilingHtml...ID=8833951
Lease with Option to Purchase Baltimore Silver Mine
On August 6, 2012, South American Gold Corp. (the “Company” or “SAGD”) entered into a binding Memorandum of Understanding (the “Agreement”) with Western Continental,Inc. (“Western”) to lease with option to purchase three patented mining claims ( the “Baltimore Silver Mine”) subject to a definitive agreement to be signed within ninety days, with an effective lease date of August 3, 2012. Our 8K filed August 9, 2012 provided property information and is incorporated herein by reference.
Western, and the Company have agreed to a Definitive Agreement ( “the Agreement”) to Lease with Option to Purchase the Baltimore Silver Mine. SAGD effected the agreement September 5, 2012 .The lease will be for a term of ten years beginning August 2, 2012, and may be extended for an additional 15 years with a payment of one hundred thousand dollars ($100,000) at any time. During the term of this lease SAGD will be responsible for the payment of any property taxes, indemnify Western for any and all activities SAGD conducts on the property, and secure all required permits and operating licenses for SAGD activities on the property. The lease payment will be $10,000 per year in cash payments, which may be paid in restricted stock as SAGD’s option provided such restricted stock has a market bid price in excess of $20,000 for the 20 days average bid price for the stock prior to payment, and a quarterly cash payment of $500.00 per quarter. Payment will be on July 31 st of each year beginning in 2013.
SAGD will pay a production royalty of all minerals mined from the property in the form of a Net Smelter Return to Western of three percent (3%). SAGD will have for the term of this agreement an option to purchase the property free and clear of any lien or encumbrance in the amount of five hundred thousand dollars ($500,000) at which time the lease would terminate and no royalty would be due afterwards from the property. Should SAGD cause to be issued a property report meeting standard industry guidelines indicating probable or proven reserves in excess of two million ounces of silver on the property, Western shall receive an additional $30,000 in cash or restricted shares valued as described above, within 30 days of publication of such report. SAGD will issue 10,000,000 shares of its restricted common stock to Western. SAGD will also pay $25,000 in cash or restricted stock, valued at the ten day average bid price for the stock, between January 1,2013 and July 1,213
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