OTTAWA, June 19, 2014 /CNW/ - Northern Shield Resources Inc. ("Northern
Shield") [TSXV: NRN] is pleased to announce that is has sold its
remaining interest in the Wabassi property to Great Lakes Resources LLC
("Great Lakes"), a private US based company, for $1.4 million cash and
royalties. Under the terms of the sale agreement, Northern Shield
transferred its 49% interest in the Wabassi property and its 59%
interest in the neighbouring Max property to Great Lakes for a cash
payment of $1.4 million. Northern Shield will maintain a 0.5% net
smelter return ("NSR") royalty on the Wabassi property and a 0.6% NSR
royalty on the Max property. Half of each NSR royalty are subject to a
buy-back. Northern Shield also granted Great Lakes a First Right of
Refusal on the Storm Property in which Northern Shield still maintains
a 100% interest. This transaction supersedes and replaces an option
agreement signed by Great Lakes in November 2013 whereby Great Lakes
could have earned a 24% interest in Northern Shield's 49% interest in
Wabassi (see press release dated November 23, 2013). Northern Shield
had received $400,000 from Great Lakes in consideration of the grant of
the Option. Great Lakes had incurred expenditures of approximately
$750,000 on further exploration efforts on the Wabassi property since
Northern Shield granted the option.
Proceeds of the sale will be used for general and administrative
purposes and for ongoing exploration on Northern Shield's current PGE
projects in Quebec and further acquisition of PGE projects.
"Although a project with great potential, by selling Wabassi, the
company can focus on its existing PGE projects and new PGE projects.",
says Northern Shield President and CEO, Ian Bliss. "With mine closures
due to escalating mining costs and labour strikes in South Africa which
produces 72% of the world's platinum and 37% of the world's palladium;
and the likelihood of sanctions against Russia, which produces 42% of
the world's palladium and 14% of the world's platinum, there is an
urgent need to find PGEs in Canada. Northern Shield is regarded around
the world as a leader in grass-roots PGE exploration. In particular we
have a thorough understanding of the PGE potential of the Labrador
Trough where much of our attention is focused at the moment."
An airborne EM survey is currently being planned for Idefix and the
recently acquired Pluto property, 50 km south of Idefix, where
significant amounts of magmatic sulphides including chalcopyrite
(copper sulphide) have been observed in outcrop by a prospector. Both
properties are currently 100% owned by Northern Shield.
Northern Shield has also staked three new properties in the Labrador
Trough (Vagabond, Roquet and Huckleberry) that are being explored for
PGEs and Noril'sk-type Ni-Cu-PGEs. These properties all cover gabbroic
sills intruded into graphitic shales and sulphide-bearing dolomites.
The host rocks provide an ideal setting for sulphide contamination of
the magma that formed the gabbro; a necessary pre-requisite for the
formation of any PGE or Ni-Cu-PGE deposit.
Northern Shield Resources Inc is a Canadian-based mineral exploration
company built around its platinum group element (PGE) expertise which
forms the basis of its exploration in eastern Canada.
Forward-Looking Statements Advisory
This news release contains statements concerning the exploration plans, results
and potential PGE and Ni-Cu-PGE and other mineralization at the
Company's Labrador Trough properties, geological, and geometrical
analyses of the Labrador Trough properties and comparisons of the
properties to other known Ni-Cu-PGE deposits, and other expectations,
plans, goals, objectives, assumptions, information or statements about
future events, conditions, results of exploration or performance that may constitute forward-looking statements or information under
applicable securities legislation. Such forward-looking statements or
information are based on a number of assumptions, which may prove to be
Although Northern Shield believes that the expectations reflected in
such forward-looking statements or information are reasonable, undue
reliance should not be placed on forward-looking statements because
Northern Shield can give no assurance that such expectations will prove
to be correct. Forward-looking statements or information are based on
current expectations, estimates and projections that involve a number
of risks and uncertainties which could cause actual results to differ
materially from those anticipated by Northern Shield and described in the forward-looking statements or information. These
risks and uncertainties include, but are not limited to, risks associated with geological, geometrical and geophysical
interpretation and analysis, the ability of Northern Shield to obtain
financing, equipment, supplies and qualified personnel necessary to
carry on exploration and the general risks and uncertainties involved
in mineral exploration and analysis.
The forward-looking statements or information contained in this news
release are made as of the date hereof and Northern Shield undertakes
no obligation to update publicly or revise any forward-looking
statements or information, whether as a result of new information,
future events or otherwise, unless so required by applicable securities
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
SOURCE: Northern Shield Resources Inc.
For further information:
Northern Shield Resources Inc.
President and CEO
Tel.: (613) 232-0459
Fax: (613) 232-0760