VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 11, 2013) - Northern Vertex Mining Corp. (the "Company") (TSX VENTURE:NEE) is pleased to announce that it has agreed to sell its 51% interest in the Lemhi Gold Trust, LLC (the "Lemhi JV") to Idaho State Gold Company, LLC ("ISGC") for US$7.65 million, consisting of US$4.75 million cash plus US$2.90 million in deferred cash payments. Closing of the US$4.75 million cash payment is expected this week and the deferred cash payments, equal to 3% of all future expenditures at the Lemhi Property, are payable to the Company in quarterly installments and capped at US$2.90 million. The US$7.65 million total proceeds from the sale of the Company's Lemhi JV interest are equal to the entirety of the capital (US$7.65 million) the Company had contributed to the Lemhi JV.
Prior to the sale, ISGC was the Company's 49% partner at the Lemhi JV. ISGC now owns 100% of the Lemhi Property in Salmon, Idaho and will immediately assume management and operating control at Lemhi, allowing the Northern Vertex team to focus exclusively on its Moss Gold-Silver Mine in NW Arizona.
Dick Whittington, President and CEO, Northern Vertex Mining Corp. states, "We are focused on developing our flagship property, the Moss Gold-Silver Mine in NW Arizona, into production through an effective and efficient parallel-track phased development plan. We are looking forward to rehabilitating and revitalizing this historic mine. The sale of our interest in the Lemhi Property is an excellent source of financing that minimizes shareholder dilution and frees up management and capital resources, allowing us to stay focused on the development of the Moss Mine."
About Northern Vertex:
Northern Vertex Mining Corp. is a Canadian based exploration and mining company focused on the development of the Moss Gold-Silver Mine located in NW Arizona, USA. The Company comprises an experienced management team with a strong background in all aspects of acquisition, exploration, development, operations and financing of mining projects worldwide. The Moss Gold-Silver Mine contains 956,800 oz of AuEq in the Measured and Indicated categories and 266,340 AuEq oz in the Inferred category. It is a low strip ratio, heap leach, open pit project being advanced under a three phase business plan, specifically designed to ensure that technical, economic, permitting and funding requirements are met prior to each phase proceeding. The Company is focused on working effectively and respectfully with our stakeholders in the vicinity of the Moss Mine and enhancing the capacity of the local communities in the area.
For further details of the mineral resource estimate above, please click on the following link: http://www.northernvertex.com/s/Moss.asp
ON BEHALF OF THE BOARD OF DIRECTORS
J.R.H. (Dick) Whittington, President & CEO
The mineral resource is reported in accordance with Canadian Securities Administration (CSA) NI 43-101 and has been classified in accordance with standards as defined by the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) CIM Definition Standards for Mineral Resources and Mineral Reserves. The mineral resource estimate was prepared by Scott E. Wilson Consultants of Denver, an independent QP under NI 43-101. The foregoing geological disclosure has also been reviewed by Northern Vertex's General Manager of Exploration, Mr. Colin McKenzie, a qualified person ("QP") for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects.
This news release contains statements about our future business and planned activities. These are "forward-looking" because we have used what we know and expect today to make a statement about the future. Forward-looking statements usually include words such as may, intend, plan, expect, anticipate, believe or other similar words. We believe the expectations reflected in these forward-looking statements are reasonable. However, actual events and results could be substantially different because of the risks and uncertainties associated with our business or events that happen after the date of this news release. You should not place undue reliance on forward-looking statements. As a general policy, we do not update forward-looking statements except as required by securities laws and regulations.
Cautionary Note to U.S. Investors: This news release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such Statements.
This news release uses the terms "Measured", "Indicated", and "Inferred" resources. U.S. investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. U.S. investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. U.S. Investors are also cautioned not to assume that all or any part of a Mineral Resource is economically or legally mineable.
2013 number 03