Northern Superior Resources Inc. Signs Option Agreement to Acquire a 70% Interest in Murgor Resources Inc.'s Waconichi Gold Property, Chibougamau Gold District, Quebec
SUDBURY, ONTARIO -- (Marketwire) -- 06/07/12 -- Northern Superior Resources Inc. (TSX VENTURE: SUP) ("Northern Superior" or the "Company") is pleased to announce that it has signed an option agreement (the "Option Agreement") with Murgor Resources Inc. (TSX VENTURE: MGR) ("Murgor"), granting Northern Superior an option to acquire 70% of Murgor's Waconichi gold property. This gold property is comprised of 316 mineral claims, or approximately 17,226 hectares, located 10 kilometres northwest of Chibougamau, Quebec.
Dr. T.F. Morris, President and CEO of Northern Superior states: "This strategic acquisition adjoins the northern boundary of Northern Superior's Croteau Est gold property. Structures associated with the mineralized deformation and alteration corridor on Croteau Est likely extend onto the Waconichi gold property making this new acquisition an important extension of the Croteau Est exploration program. In addition, the northern part of the Waconichi gold property encompasses an important east-west shear zone, a key target for exploration and mining in the Chibougamau mining district, from which 6 million ounces of gold and 3 billion pounds of copper have been extracted. Several important exploration targets have already been identified through the discovery of five gold grain dispersal trains, several gold showings (reported values of up to 6.5 g/t gold) and a gold bearing boulder (reported assay of 2,052 g/ t gold or 60 oz/ t gold)."
"Murgor is pleased to enter into this agreement with a partner such as Northern Superior," said Andre Tessier, President and CEO of Murgor Resources. "This option agreement conforms to Murgor's strategy to enter into solid partnerships for certain non-core assets, in order to better focus its exploration efforts on the Golden Arrow deposit east of Timmins, Ontario, where Murgor is continuing to expand the gold resource."
Northern Superior has the option to earn a 70% interest in the Waconichi gold project by meeting the following obligations:
a. spending an aggregate of $1.25 million on exploration on the property
over three years: $300,000 in year 1; $350,000 in year 2; and $600,000
in year 3;
b. making cash payments to Murgor totaling $140,000: $30,000 upon signing
the Option Agreement; $30,000 by the end of year 1; $30,000 by the end
of year 2; and $50,000 by the end of year three; and
c. issuing to Murgor, 1,000,000 common shares of the Company: 200,000
within fifteen (15) days of signing the option agreement; 200,000 at the
end of year 1; 300,000 at the end of year 2; and 300,000 by the end of
year 3. The deemed value of any shares issued to the Murgor shall be
equal to the weighted average trading price of the Company's common
shares on the TSXV for the ten (10) trading days ending immediately
prior to the date such shares are issued and delivered to Murgor.
Northern Superior retains the right to accelerate any of the obligations.
The parties have agreed that any further claims which are staked within 1.5 km of the property (excluding any claims which currently form part of the Croteau Est property), shall form part of the option. The Companies have agreed to execute and deliver a definitive joint venture agreement no later than 90 days after the signing of the option agreement.
The transaction is conditional upon TSX Venture Exchange approval.
About Northern Superior Resources Inc.
Northern Superior is a junior exploration company focused on exploring for gold in the Superior Province of the Canadian Shield. The Company is currently focused on exploring its Croteau- Est gold property in west- central Quebec. actively exploring for gold within two important gold districts: the The Company has a number of 100% owned properties (see Company website, www.nsuperior.com) located within the gold districts of Stull-Wunnimun in Ontario and the Chibougamau in Quebec, identified and developed from the Company's extensive geoscientific data base and from which additional gold exploration projects are being generated. The Company is currently seeking to option-out a number of these properties.
Northern Superior is a reporting issuer in British Columbia, Alberta, Ontario and Quebec, and trades on the TSX Venture Exchange under the symbol SUP.
About Murgor Resources Inc.
Murgor Resources Inc. is a mineral exploration and development Company focused on near-term production at the Golden Arrow Gold Mine in Ontario. Murgor also owns a 100% interest in two gold-copper deposits in the Snow Lake and Flin Flon mining districts of Manitoba. The company further owns an exceptional portfolio of gold properties in proven mining districts of Canada, as well as a 1% NSR royalty in the Barry Gold Mine and the Windfall Gold Project in Quebec.
For Investors
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 and Murgor 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 or Murgor'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 Companies have 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.
Contacts:
Northern Superior Resources Inc.
Thomas F. Morris PGeo., PhD., FGAC
President and CEO
(705) 525-0992
(705) 525-7701 (FAX)
info@nsuperior.com
www.nsuperior.com
Murgor Resources Inc.
Andre C. Tessier
President & CEO
1-888-891-3330
info@murgor.com
www.murgor.com
CHF Investor Relations
Cathy Hume
CEO
(416) 868-1079 ext 231
cathy@chfir.com
CHF Investor Relations
Jeremy Hill
Associate Account Manager
(416) 868-1079 ext 238
jeremy@chfir.com