Business
Northern Shield Receives $1.4 Million Cash and Royalties Through Sale of Wabassi Project; Company to Focus on existing and new PGE Projects
OTTAWA , June 19, 2014 /CNW/ - Northern Shield Resources Inc. ("Northern Shield") [TSXV:...
About this update from Northern Shield Resources Inc.
[{"type":"text","content":"\n\n\nOTTAWA, June 19, 2014 /CNW/ - Northern Shield Resources Inc. (\"Northern\n Shield\") [TSXV: NRN] is pleased to announce that is has sold its\n remaining interest in the Wabassi property to Great Lakes Resources LLC\n (\"Great Lakes\"), a private US based company, for $1.4 million cash and\n royalties. Under the terms of the sale agreement, Northern Shield\n transferred its 49% interest in the Wabassi property and its 59%\n interest in the neighbouring Max property to Great Lakes for a cash\n payment of $1.4 million. Northern Shield will maintain a 0.5% net\n smelter return (\"NSR\") royalty on the Wabassi property and a 0.6% NSR\n royalty on the Max property. Half of each NSR royalty are subject to a\n buy-back. Northern Shield also granted Great Lakes a First Right of\n Refusal on the Storm Property in which Northern Shield still maintains\n a 100% interest. This transaction supersedes and replaces an option\n agreement signed by Great Lakes in November 2013 whereby Great Lakes\n could have earned a 24% interest in Northern Shield's 49% interest in\n Wabassi (see press release dated November 23, 2013). Northern Shield\n had received $400,000 from Great Lakes in consideration of the grant of\n the Option.  Great Lakes had incurred expenditures of approximately\n $750,000 on further exploration efforts on the Wabassi property since\n Northern Shield granted the option.\n\n\nProceeds of the sale will be used for general and administrative\n purposes and for ongoing exploration on Northern Shield's current PGE\n projects in Quebec and further acquisition of PGE projects.\n\n\n\"Although a project with great potential, by selling Wabassi, the\n company can focus on its existing PGE projects and new PGE projects.\",\n says Northern Shield President and CEO, Ian Bliss. \"With mine closures\n due to escalating mining costs and labour strikes in South Africa which\n produces 72% of the world's platinum and 37% of the world's palladium;\n and the likelihood of sanctions against Russia, which produces 42% of\n the world's palladium and 14% of the world's platinum, there is an\n urgent need to find PGEs in Canada. Northern Shield is regarded around\n the world as a leader in grass-roots PGE exploration. In particular we\n have a thorough understanding of the PGE potential of the Labrador\n Trough where much of our attention is f...