Southern Gold Ltd. has announced a new agreement with Westgold Resources Ltd. for the underground development phase at Southern Gold's Cannon gold mine, near Kalgoorlie, WA. The features of the agreement comprise: Westgold to have a 5 year right-to-mine over a defined 1km radius on mining license M25/333 which essentially covers the Cannon Gold deposit with Westgold assuming all financing and operating risk; Westgold will have the right and flexibility to devise its own mine plan; and In exchange for this right to mine, Westgold will pay Southern Gold AUD 1.5 million within 5 business days and a production payment on a AUD per troy oz of gold produced.