NewCastle Options Its Carscallen Property to SGX Resources Inc.
Newcastle Minerals Ltd.
Press Release
NEWCASTLE OPTIONS ITS CARSCALLEN PROPERTY TO SGX RESOURCES INC.
VICTORIA, BC, May 3, 2010 – Newcastle Minerals Ltd. (TSXV:NCM) is pleased to announce that it has, subject to regulatory acceptance, granted an option to Suite 416 108-800 Kelly Road SGX Resources Inc. (TSXV:SXR) on Newcastle’s Carscallen Property located in Victoria, BC V9B 6J9 the West Timmins area of Ontario.
T 250 474 7999 F 250 474 7997 [email protected] Newcastle’s President, Mr. Michael Romanik, said “We are very pleased to have www.newcastleminerals.com entered into this relationship with SGX. Although it is a new company, SGX is a TSXV-NCM spin-off from San Gold Corporation (TSX:SGR). We are confident that SGX has the experience and technical team needed to see this project all the way through exploration and even to feasibility and production. To date, Newcastle has drilled two holes on the property and assays are pending. Under the option, SGX will become the operator will and take over the exploration program.”
To exercise its option and acquire a 50% interest in Newcastle’s Carscallen Property, SGX must pay Newcastle $100,000, issue $75,000 of SGX shares, and assume or reimburse all remaining payment obligations under Newcastle’s head option agreement, except for the issuance of up to 900,000 Newcastle shares. SGX must also complete $1,500,000 of exploration on the property over the next two years.
SGX may acquire an additional 25% interest in the property by paying and issuing to Newcastle a further $150,000 and 600,000 SGX shares, and completing an additional $1,000,000 of exploration in the third year.
Michael Romanik also said “This transaction will save Newcastle a significant amount of money going forward, while still maintaining a stake in a very exciting project that will see at least $2.5 million being spent on exploration over the next three years. This also minimizes the dilution to Newcastle’s stock, frees up capital for our other projects, as well as taps some of the best geologists, mining engineers and drillers in the Timmins area for our Carscallen Property.”
“With our significant 18,000-acre parcel in the Pickle Lake area surrounding PC Gold Inc.’s Pickle Crow gold mine property, as well as 16,000 acres near Trelawney Mining and Exploration Inc.’s Chester Township discovery, entering into an agreement on our Carscallen Property is in the best interests of our shareholders. It is a very exciting time for Newcastle: In addition to the pending assay results from the first two holes from our Carscallen Property, we have started a geophysics program to outline drill targets on our Mollie River project and we are awaiting completion of our National Instrument 43-101 technical report on our Pickle Lake Property.”
“We are very proud to have SGX as a partner on our Carscallen Property and we look forward to working alongside them on this project.”
Newcastle’s 120-hectare Carscallen Property is adjacent to Highway 101, 21 kilometres southwest of Timmins, Ontario. It is surrounded by Lake Shore Gold Corp.’s Timmins West Gold Mine Complex, and lies east of Melkior Resources Inc.’s Carscallen property.
ON BEHALF OF THE BOARD
Signed “Michael Romanik”
Michael Romanik, President Direct line: (204) 724-0613
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.