Discovery Harbour Granted Option to Acquire Additional 49% Interest in Wabassi Joint Venture, Northwest Ontario

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[{"type":"text","content":"\n\nVANCOUVER, June 19, 2014 /CNW/ - Discovery Harbour Resources Corp. (TSXV:DHR) (\"Discovery\" or the \"Company\") announces that Northern Shield Resources Inc. (\"Northern Shield\") (TSXV:NRN), has sold its 49% interest in the Wabassi Joint Venture (the \"Wabassi JV\") and its 59% interest in the joint venture for the neighboring Max property (the \"Max JV\") to Great Lakes Resources LLC (\"Great Lakes\"), a private US based company, and has granted Great Lakes a first right of refusal to acquire its 100% interest in the Storm Property (the \"Storm Rights\"). As a result of this acquisition by Great Lakes, the interests in the Wabassi JV are held by the Company (51%) and Great Lakes (49%) and the interests in the Max JV are held by Great Lakes (59%) and by Rainy Mountain Royalty Corp. (TSXV:RMO) (41%).\n\nOn completion of this purchase by Great Lakes, the Company was granted an option (the \"Option\") by Great Lakes to acquire a 49% interest in the Wabassi JV, a 59% interest in the Max JV and the Storm Rights. The Option may be exercised by the Company paying $2,605,684 plus 8% accumulated interest thereon, compounded monthly, by June 18, 2015. If the Option is exercised by the Company, the Company will acquire a 49% interest in the Wabassi JV which would make the Company the 100% owner of the Wabassi Property, a 59% interest in the Max JV and the Storm Rights, all subject to the NRN Wabassi Royalty (as defined below) and the NRN Max Royalty (as defined below).\n\nAs part of purchase transaction between Great Lakes and Northern Shield, Great Lakes granted Northern Shield a 0.5% net smelter returns royalty from the Wabassi property (the \"NRN Wabassi Royalty\") and a 0.6% net smelter returns royalty from the Max property (the \"NRN Max Royalty\"). Half of each of the NRN Wabassi Royalty and NRN Max Royalty may be purchased by the royalty payor paying $750,000 to Northern Shield at any time on or before June 18, 2019, or by paying $1,500,000 thereafter in respect of each royalty.\n\nIn addition, the Company, Great Lakes and Northern Shield have agreed with respect to each of the Wabassi JV and the Max JV, that if Great Lakes' participating interest in each of these joint ventures is diluted below 10% before the Option is exercised by the Company, then: (i) the NRN Wabassi Royalty and NRN Max Royalty will be terminated, and...

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