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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
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