Northern Shield Receives $1.4 Million Cash and Royalties Through Sale of Wabassi Project; Company to Focus on existing and new PGE Projects
Ottawa, Ontario (June 18, 2014) – Northern Shield Resources Inc. (“Northern Shield”) [TSXV: NRN] is pleased to announce that is has sold its remaining interest in the Wabassi property to Great Lakes Resources LLC (“Great Lakes”), a private US based company, for $1.4 million cash and royalties. Under the terms of the sale agreement, Northern Shield transferred its 49% interest in the Wabassi property and its 59% interest in the neighbouring Max property to Great Lakes for a cash payment of $1.4 million. Northern Shield will maintain a 0.5% net smelter return (“NSR”) royalty on the Wabassi property and a 0.6% NSR royalty on the Max property. Half of each NSR royalty are subject to a buy-back. Northern Shield also granted Great Lakes a First Right of Refusal on the Storm Property in which Northern Shield still maintains a 100% interest. This transaction supersedes and replaces an option agreement signed by Great Lakes in November 2013 whereby Great Lakes could have earned a 24% interest in Northern Shield’s 49% interest in Wabassi (see press release dated November 23, 2013). Northern Shield had received $400,000 from Great Lakes in consideration of the grant of the Option. Great Lakes had incurred expenditures of approximately $750,000 on further exploration efforts on the Wabassi property since Northern Shield granted the option.