Sudbury, Ontario, April 21, 2015 - Northern Superior Resources Inc. (TSXV:SUP) (“Northern Superior”) is pleased to announce it has entered into a formal option and joint venture agreement with a subsidiary of Chalice Gold Mines Limited (TSX:CXN and ASX:CHN) (“Chalice”) relating to Northern Superior’s Croteau Est gold property, west-central Québec.
Northern Superior’s Croteau Est gold property (which now includes claims which used to be referred to as its Wachonichi property) is located near Chibougamau, Québec. The property is comprised of 213 claims totaling approximately 8,316 hectares which are 100% owned by Northern Superior, and 109 claims totaling approximately 3,856 hectares which are under option from G.L Geoservices and Mark Bouchard.
Pursuant to the agreement, Chalice can earn a 65% joint venture interest in the Croteau Est property by spending an aggregate of $4,000,000 on exploration expenditures over three (3) years. Chalice is obligated to spend a minimum of $500,000 on exploration of the Croteau Est property in the first year regardless of whether it fully exercises its option.
Upon completion of the $4,000,000 expenditure earn-in requirement, a joint venture will be formed with Chalice holding a 65% joint venture interest and Northern Superior owning a 35% joint venture interest and thereafter, each party will be required to contribute to any further programs pro rata according to its joint venture interest. Should a joint venture party fail to make any of its required program contributions, its interest will be diluted accordingly. If a party’s joint venture interest is diluted below 10%, its joint venture interest will be converted to a NSR interest as follows:
- with respect to any claims which are already subject to an NSR (to a third party):
- for period(s) where the price of gold (as quoted on the London Gold Fix) is less than C$1,800 per ounce, a 1% NSR; and
- for period(s) where the price of gold (as quoted on the London Gold Fix) exceeds C$1,800 per ounce, a 2% NSR; and
- with respect to all other claims, a 2% NSR, and in each case, one-half of the NSR percentages can be bought back for $1,000,000.
Dr. T.F. Morris, President and CEO of Northern Superior commented “This agreement with Chalice provides a refreshing opportunity to advance one of Northern Superior’s key properties forward, after a period of inactivity. We are very excited at the prospect of finally being able to drill-test key mineral targets with a partner who is as excited and determined to make discovery as we are.”
The Croteau Est property is managed under a pre-development agreement with the First Nation community of Oujé Bougoumou, the Cree Regional authority and the Grand Council of the Cree. No finder’s fee is payable by Northern Superior in connection with the transaction and Northern Superior and Chalice deal at arm’s length with one another. The transaction is not subject to TSXV review or approval.
About Northern Superior
Northern Superior is a junior exploration company exploring for gold in the Superior Province of the Canadian Shield. The Company is currently focused on exploring its Croteau Est property in Québec and its Ti-pa-haa-kaa-ning in Ontario. Northern Superior also has a number of other 100% owned properties in Ontario and Québec.
Northern Superior is a reporting issuer in British Columbia, Alberta, Ontario and Québec, and trades on the TSX Venture Exchange under the symbol SUP.
For more information, please visit www.nsuperior.com
Thomas F. Morris PGeo., PhD., FGAC
President and CEO
Tel: (705) 525 ‐0992
Fax: (705) 525 ‐7701
Forward looking statements: This news release includes certain “forward-looking information” within the meaning of Canadian securities legislation and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act or 1995 (collectively, “forward looking statements”). Forward looking statements include predictions, projections and forecasts and are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “forecast”, “ expect”, “ potential”, “project”, “target”, “schedule”, “budget” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved or other similar expressions and includes the negatives thereof. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding potential mineralization, exploration results, interpretation of results, the timing and success of exploration activities generally, the timing and results of future resource estimates, and future plans and objectives of Northern Superior are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward looking statements are based on a number of material factors and assumptions. Important factors that could cause actual results to differ materially from Northern Superior’s expectations include exploration risks, changes in project parameters as plans continue to be refined, results of future resources estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the Company with securities regulators. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ from those described in forward looking statements, there may be other factors that cause such actions, events or results to differ materially from those anticipated. There can be no assurance that forward looking statements will prove to be accurate and accordingly readers are cautioned not to place undue reliance on forward looking statements.
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.