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Northern Gold Enters Into Letter Agreement to Acquire Additional Mining Claims in Larder Lake District
By: Marketwired .
Dec. 21, 2012 03:03 PM
TORONTO, ONTARIO -- (Marketwire) -- 12/21/12 -- NORTHERN GOLD MINING INC. (TSX VENTURE:NGM) ("Northern Gold" or the "Company") and Champagne Resources Ltd. ("Champagne") have entered into a letter of intent (the "Letter Agreement"), pursuant to which Champagne has granted the Company the right to acquire all of its right, title and interest in certain mining claims located in each of the Guibord, Michaud and Holloway Townships, Ontario (the "Champagne Property").
Pursuant to the terms of the Letter Agreement the Company can acquire the Champagne Property (the "Transaction") in exchange for:
-- CDN$250,000 payable on or before closing the Transaction; -- the transfer of all of Northern Gold's right, title, and interest in and to certain staked mining claims located in Bernhardt, Lebel and Morrisette Townships, Ontario (the "Kirana Property") to Champagne; and -- a one percent (1%) net smelter return royalty (the "NSR") from production on the Champagne Property, to be granted to Champagne. Northern Gold shall have the right and option to purchase one-half of one percent (0.5%) of the NSR for the amount of $1,000,000.
The Champagne Property consists of 21 mineral claims. The 7 claims located in Michaud Township are contiguous to mineral claims currently held by Northern Gold. The 10 claims in Holloway Township lie due south of St. Andrew Goldfields' Holt Mine and the remaining 4 claims in Guibord Township are contiguous to Lake Shore Gold's Fenn-Gib project. Subsequent to completion of the Transaction, Northern Gold will hold mineral properties covering approximately 17,000 hectares of land in the area.
"The acquisition of the Champagne Property will add to our expanding regional land package and compliments the Company's overall initiative" said Greg Gibson, President and CEO of Northern Gold. "We continue to remain focused on property acquisitions in the Timmins Gold Camp as well as advanced exploration efforts on our existing properties."
The transaction is subject to receipt of all approvals required by the parties, including that of the TSX Venture Exchange (the "TSXV").
About Northern Gold
Northern Gold is a TSXV-listed gold company based in Toronto, Ontario. The Company's main focus is the exploration and development of its prospective mineral properties in the Timmins Gold Camp in northeastern Ontario. Led by an experienced management team, Northern Gold has a portfolio of advanced exploration projects, including the Jonpol and Garrcon Deposits and the newly acquired Buffonta Property. The recent acquisition of the Harker-Holloway Gold Property and proposed amalgamation with Victory Gold Mines Inc. add to the Company's regional consolidation strategy along the Destor-Porcupine Fault Zone.
CAUTIONARY STATEMENT: No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, Northern Gold's objectives, goals or future plans, statements regarding exploration results and exploration plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, capital and operating costs varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry, and those risks set out in Northern Gold's public documents filed on SEDAR. Although Northern Gold believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Northern Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
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