High North Resources Ltd. announces reduction in gross Overriding Royalty
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./
CALGARY, March 24, 2014 /CNW/ - High North Resources Ltd. (TSXV: HN) (the "Company" or "High North") is pleased to announce that it has entered into an amending agreement on March 21, 2014 (the "Agreement") with Gamma Ventures Inc., Tiger Moth Energy Inc., Triple Pacer Resources Ltd. and McCowan Exploration Management Ltd. (the "Farmors"). The Agreement reduces the rate of the overriding royalty (the "Overriding Royalty") payable under three farmout agreements between the Company and the Farmors (the "Farmout Agreements").
The Agreement encompasses the Company's McLean Creek Block "A" Area, the McLean Creek Block "B" Area, the McLean Creek Block "C" Area, the Sturgeon Lake/Snipe Lake Block "D" Area and Block "H" and "I". (the "Farmout Lands"). The Farmout Agreements cover approximately 100 sections of land.
Under the terms of the Agreement, the Farmors have agreed to reduce the Overriding Royalty on the Farmout Lands from 8 percent to 5 percent and have agreed to increase the Overriding Royalty on the area of mutual interest lands ("AMI Lands") from 2.5 percent to 4 percent.
As consideration for the amendment of Overriding Royalty, the Company intends to make the following payments to the Farmors: (i) $1,000,000 by April 15, 2014, and (ii) an additional $4,000,000 by June 30, 2014 (collectively, the "Payments"). If the Company makes the Payments, then the changes in the Overriding Royalty on the Farmout Lands and AMI Lands shall come into effect as of July 1, 2014.
Concurrently, the Company and the Farmors also executed an amending agreement to delay certain of the Company's drilling obligations under the Farmout Agreements until July 2014.
High North is a Calgary-based company that explores, develops and produces oil and natural gas in Western Canada. High North trades on the TSX Venture Exchange under the symbol HN.
Forward-looking Statements and Information
This news release contains certain statements that may be "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could, "should" or "shall" occur. In particular, but without limiting the foregoing, this news release contains forward-looking statements or information pertaining to, among other things, future growth, future royalty payments, the payment of consideration, anticipated changes to the Overriding Royalty and the Company's future drilling obligations. Although High North believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of High North's management on the date the statements are made. Except as required by law, High North undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
The forward-looking statements contained in this news release are made as of the date of this news release, and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by securities law.
Neither the 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.
SOURCE High North Resources Ltd.For further information:
Mr. Kyle Stevenson,
Investor Relations and Director
Telephone: (604) 687-1779
Mr. Colin Soares,
President, Chief Executive Officer, and Director
Telephone: (403) 454-5565