WSR Gold Inc.

WSR Gold Inc.
Noront Resources Ltd.

Noront Resources Ltd.

November 01, 2007 13:31 ET

WSR Gold Inc. Announces Option Agreement With Noront Resources Ltd. to Acquire 50% of Tri-Eagle Property, McFauld's Lake, Ontario

TORONTO, ONTARIO--(Marketwire - Nov. 1, 2007) - WSR Gold Inc. (TSX VENTURE:WSR) ("WSR") and Noront Resources Ltd. (TSX VENTURE:NOT) ("Noront") are pleased to announce that they have entered into an option agreement pursuant to which WSR has been granted the option to acquire a 50% legal and beneficial interest in a property. The area will include 15 Claim Blocks, approximately 4,400 hectares (9,600 acres) in the "Ring of Fire", McFauld's Lake, Ontario, near Noront's nickle copper discovery.

In order to acquire its interest in the property, WSR is required to:

1. Issue to Noront an aggregate of 400,000 common shares on both parties receiving all required approvals including TSX Venture Exchange and Board of Directors approval of the Option Agreement;

2. Incur aggregate exploration expenditures on the property of $5,000,000 over a three year period (of which $1,500,000 must be expended in the first year);

3. make cash payments to Noront totaling $400,000 within two years of receiving the above noted approvals of the Option Agreement (of which $200,000 must be paid in the first year, and any portion of the aggregate of $400,000 may be satisfied at the option of Noront, by the issuance to Noront of up to 800,000 common shares of WSR at a deemed price of $0.50 per share).

The transaction remains subject to required approvals on both sides including the approval of the TSX Venture Exchange and WSR's Board of Directors.

Upon WSR earning its 50% interest in the property, WSR and Noront shall form a joint management committee to further develop the property and Noront shall act as Operator.

Forward Looking Statements:

Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of WSR are forward looking statements that involve various degrees of risk. The following are important factors that could cause WSR's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • WSR Gold Inc.
    John Tait
    President and Chief Executive Officer
    (416) 628-5905