San Gold Corporation (SGRCF)

[goldenpolarbear]

TORONTO, ONTARIO and LONGUEUIL, QUEBEC--(Marketwired - Jan 24, 2014) - Kerr Mines Inc. ("Kerr Mines") (TSX:KER) and Bear Lake Gold Ltd. ("Bear Lake") (TSX VENTURE:BLG) are pleased to announce that they have entered into a letter agreement to combine the two companies (the "Transaction").

Transaction Details

Under the terms of the letter agreement, Kerr Mines proposes to issue 1.4 units (each, a "Unit") of Kerr Mines for every one (1) common share of Bear Lake (the "Exchange Ratio"). Each Unit will consist of one Kerr Mines share and one-half of one Kerr Mines warrant. Each whole Kerr Mines warrant will entitle the holder thereof to purchase one Kerr Mines share at an exercise price of $0.16 per Kerr Mines Share for a period of two (2) years from the closing of the Transaction. Currently Kerr Mines has approximately 427 million shares issued and outstanding while Bear Lake has approximately 136 million shares issued and outstanding. As a result, approximately 190,934,163 Kerr Mines Units will be issued to former Bear Lake shareholders to acquire the 100% interest in Bear Lake. It is anticipated that the Transaction will be completed prior to the proposed acquisition of American Bonanza Mining Corp. by Kerr Mines, announced on January 23, 2014 (the "American Bonanza Transaction").

http://finance.yahoo.com/news/kerr-mines-bear-lake-gold-134402184.html