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 incorrect.
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 laws
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.
Northern Shield Resources Inc.
President and CEO
Tel.: (613) 232-0459
Fax: (613) 232-0760