Northern Gold Enters Into Agreement to Acquire Mining Claims in Larder Lake District
Northern Gold Mining Inc. (NGM.V) and Champagne Resources Ltd. have entered into a letter of intent, pursuant to which Champagne has granted Northern the right to acquire all of its right, title and interest in certain mining claims located in each of the Guibord, Michaud and Holloway Townships, Ontario (the Champagne Property).
Pursuant to the terms of the agreement, the company can acquire the Champagne Property, which consists of 21 mineral claims, in exchange for:
-- $250,000 payable on or before closing the transaction;
-- the transfer of all of Northern Gold's right, title, and interest in and to certain staked mining claims located in Bernhardt, Lebel and Morrisette Townships, Ontario (the Kirana Property) to Champagne; and
-- a 1% net smelter return royalty from production on the Champagne Property, to be granted to Champagne. Northern Gold shall have the right and option to purchase one-half of one percent (0.5%) of the NSR for the amount of $1,000,000.
NGM shares gained half-a-cent to $0.33.
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