Canadian Arrow $0.5m financing and property option agreement with San Gold Corporation

    




 SUDBURY, ON, June 27, 2012 /CNW/ - Canadian Arrow Mines Limited  (the "Company") is pleased to report that it has entered into an option  agreement (the "Agreement") with San Gold Corporation   ("San Gold") whereby the Company has agreed to grant San Gold the  option to acquire an 80% undivided interest in all precious metals  including, but not limited to, gold and silver but specifically  excluding platinum and palladium (the "Precious Metals"), contained on  it's current properties. The rights to all other mineral resources  including, but not restricted to, base metals, platinum and palladium  remains with Canadian Arrow. 

 Mr. Kim Tyler, President, said, "We are very pleased that San Gold has  agreed to invest exploration expenditures in our mineral properties and  in our Company directly through the equity placement. This represents  an aggregate $2,000,000 investment in the Company.  Many unexplored  exploration targets and geophysical anomalies on our properties are  prospective for both base metal and precious metal potential." 

 To maintain the Agreement in good standing and earn an 80% interest in  the Precious Metals contained on the properties, San Gold has agreed  to, among other things, purchase 5,000,000 units of the Company at a  price of $0.10 per unit. Each unit will be comprised of one common  share in the capital of the Company and a ½ of one share purchase  warrant. Each full warrant will entitle San Gold to purchase one common  share in the capital of the Company for an exercise price of $0.20 for  a period up to two years from the date of the issuance of the warrant.   The securities issued in connection with the unit offering are subject  to a four month hold period that will expire on October 26, 2012. In  addition San Gold is also required to incur an aggregate $1,500,000 in  expenditures on the properties graduated over four years from the date  of execution of the Agreement. Upon completion of San Gold's  obligations under the Agreement, San Gold will earn an 80% interest in  all Precious Metals contained on the properties and a joint venture  will be formed between San Gold and the Company. Initial ownership in  the joint venture will be San Gold 80% and Canadian Arrow 20%. 

 Kelex Production Update: Pre-production work has been progressing well on the Kelex project.   De-watering of the West and Central West pits is now complete.    Overburden stripping in advance of production is approximately 50%  complete. 

 The information in this release was prepared under the direction of Mr.  R. Kim Tyler, P. Geo., President of the Company, a Qualified Person as  defined by NI 43-101. 

 About Canadian Arrow Mines: 

 The Company is resuming production on its past producing Alexo nickel  complex located in the Abitibi nickel district east of Timmins Ontario.  The Alexo and Kelex mines have historically produced 87,000 tonnes  averaging 3.06% nickel from both underground and open pit mining.  The  Company is also developing its flagship Kenbridge nickel/copper/cobalt  project located near Kenora, Ontario. Exploration potential exists  along strike and at depth on both projects. 

 Additional information relating to Canadian Arrow is available on SEDAR  at www.sedar.com    

 This press release may contain "forward-looking statements" within the  meaning of the Canadian securities legislation and the United States  Private Securities Litigation Reform Act of 1995. These forward-looking  statements are made as of the date of this press release and the  Company does not intend, and does not assume, any obligation to update  these forward-looking statements. 

 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. 

Canadian Arrow Mines Limited


CONTACT:  visit the website at www.canadianarrowmines.ca, or contact Mr. R.KimTyler President and Director toll free, 1-877-673-5462. 


    

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