Toronto, Ontario--(Newsfile Corp. - February 25, 2019) - As a result of a review by staff of the Ontario Securities Commission, Northern Sphere Mining Corp. (CSE: NSM) (OTC Pink: NSMCF) ("Northern Sphere" or the "Company") wishes to clarify certain disclosure pertaining to the Scadding Property ("Scadding" or the "Project").
The Scadding Property discussed herein refers to a number of mineral exploration claims and leases, located northeast of Sudbury, Ontario. The Company wishes to provide a history on the Project in order to provide clarification on all obligations, including cash payments and net smelter royalties ("NSR").
On May 5, 2009, MPE International Inc. ("MPE") and Currie Rose Resources Inc. ("Currie Rose") entered into an option and joint venture agreement (the "MPE-CR Agreement") which was subsequently assigned by MPE to Trueclaim Exploration Inc. ("Trueclaim") pursuant to an assignment agreement dated May 5, 2009. Under the terms of the MPE-CR Agreement, MPE (or its assigns) earned a 51% interest in certain mineral exploration leases ("Scadding Leases") comprising a portion of the current Scadding Property. The Agreement further states that anytime after earning the first 51%, MPE (or its assigns) may earn up to 100% interest in the Scadding Leases subject to a payment to Currie Rose of $2,000,000 and a 3% Net Smelter Return.
In addition to the acquisition of the Scadding Leases, Trueclaim announced staking of wholly owned mineral exploration claims in the Scadding area on September 15, 2009. On October 15, 2009, Trueclaim entered in to an agreement with Pacific North West Capital to acquire a 100% interest in additional mineral exploration claims upon which Trueclaim granted a 1.5% NSR to Pacific North West Capital. On July 7, 2010, Trueclaim entered into an additional option agreement with an individual landowner to acquire a 100% interest in additional mineral exploration claims in the Scadding area subject to a 2.0% NSR. Trueclaim refers to its interest in these mineral exploration claims along with the Scadding Leases discussed above as the "Scadding Property".
On November 12, 2015, Northern Sphere entered into a joint venture agreement (the "Trueclaim JV Agreement") with Trueclaim, pursuant to which Trueclaim granted the Company an 80% interest in Trueclaim's interest in the Scadding Property (including Trueclaim's 51% of the Scadding Leases), subject to the obligations and NSR's committed to by Trueclaim as outlined above.
In September of 2018, the Company acquired the remaining 20% of Trueclaim's interest in the Trueclaim JV Agreement. Northern Sphere is currently the Operator and manages 100% of the Scadding Property. The Company has an option to earn the remaining 49% interest in the Scadding Leases subject to a payment to Currie Rose of $2,000,000 and a 3% Net Smelter Return and may do so if and when it determines that it can begin commercial production on the Scadding Leases and once it would be most advantageous to do so.
About Northern Sphere
Northern Sphere is a mineral exploration company focused on the acquisition, exploration and development of primarily gold, copper, and silver properties. For further details on Northern Sphere, please refer to our web site (www.northernsphere.com) and Northern Sphere's Canadian regulatory filings on SEDAR at www.sedar.com.
For further information please contact:
Kelly Malcolm Interim
CEO and Director
Corporate office: Suite 2150, 121 King West, Toronto, Ontario, Canada M5H 3T9
CAUTIONARY STATEMENT: The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release contains forward-looking information, which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, Northern Sphere's objectives, goals or future plans, statements regarding exploration results, exploration plans and the timing of a potential resource estimate. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, uncertainties inherent to preparing a resource estimate within expected timeline, capital and operating costs varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry, and those risks set out in Northern Sphere's public documents filed on SEDAR. Although Northern Sphere believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this press release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Northern Sphere disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law. We seek safe harbour.
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