SUDBURY, ONTARIO--(Marketwired - May 27, 2013) - Northern Superior Resources Inc. (TSX VENTURE:SUP) ("Northern Superior" or the "Company") is pleased to announce that it has entered into a binding agreement to acquire the Waconichi Gold property from Murgor Resources Inc. (TSX VENTURE:MGR) ("Murgor"). The Waconichi Gold property consists of 306 claims covering an area of approximately 17,588 hectares and the largest cluster of claims are adjacent to the Company's Croteau Est gold property located to the south.
This acquisition, combined with the Company's adjoining Croteau Est gold property, and its newly acquired holdings south and northeast (see Figure 1), of Croteau, will give Northern Superior a strategic property position of a large, contiguous, and easily accessible land package in the highly prospective Chibougamau- Chapais gold-copper camp of west-central Québec. The combined properties (now referred to simply as the Croteau Est property) consists of 513 claims that encompasses an area of approximately 22,576 hectares. The Croteau Est property is located just 10 kilometres northwest of Chibougamau, Québec. The main block of claims is accessible year round by three primary roads, extending from each a labyrinth of forestry roads.
Dr. T.F. Morris, President and CEO of Northern Superior states: "Exploration by Northern Superior on the combined Croteau Est/Waconichi property to date has clearly demonstrated that there is at least one large structure (the Croteau-Bouchard Shear Zone- CBSZ) that has the capacity to host large volumes of gold-bearing fluids. Geophysical and structural studies also indicate the presence for additional structures and "traps" elsewhere on the property that Northern Superior will begin to systematically evaluate through prospecting and geochemical surveys this summer. The Company is very excited about the opportunities that the newly-expanded Croteau Est property will present and looks forward to initiating its exploration programs."
Northern Superior previously held an option to earn only a 70% interest in the Waconichi Gold property but was able to renegotiate its arrangement with Murgor to acquire 100% of the property. Under the former option, to earn its 70% interest Northern Superior would have been required to pay Murgor a further $110,000 in cash, issue 800,000 additional Northern Superior shares and expend approximately $950,000 more on exploration on the Waconichi claims over the next two years.
Under the renegotiated arrangement, Northern Superior will acquire a full 100% interest in the property by making a one-time cash payment of $225,000 and by granting Murgor a 1% NSR royalty on a majority of the Waconichi claims. Northern Superior will no longer be required to issue further shares to Murgor or incur further expenditures on the property.
The 1% NSR royalty granted to Murgor will cover all of the claims purchased from Murgor except for 7 claims (comprising approximately 287 hectares) which were already subject to a prior 2% NSR royalty in favor of Reme Charbonneau, the prospector who originally staked those 7 claims. Northern Superior will have the right to repurchase half of the Murgor 1% NSR royalty (reducing it to a 0.5% NSR royalty) at any time, for $1,000,000. Similarly, Northern Superior will have the right to repurchase half of the Charbonneau 2% NSR royalty (reducing it to a 1% NSR royalty) at any time, for $1,000,000. In either case, should Northern Superior exercise its buy-back right, it will then have a right of first refusal with respect to the remaining NSR royalty.
About Northern Superior Resources Inc.
Northern Superior is a junior exploration company listed on the TSX Venture Exchange who is focused on exploring for gold in the Superior Province of the Canadian Shield. The Company is actively exploring for gold within two important gold districts: the Stull-Wunnimun in Ontario and the Chibougamau in Québec. The Company also has a number of additional 100% owned properties (see Company web site, www.nsuperior.com) within these districts that were identified and developed from the Company's extensive geoscientific database, 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 Québec, and trades on the TSX Venture Exchange under the symbol SUP.
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.
To view Figure 1, click on the following link: http://media3.marketwire.com/docs/sup524m.pdf