Northern Empire Resources Corp.
TSX VENTURE : NM

Northern Empire Resources Corp.

March 11, 2015 07:00 ET

Northern Empire and Sonoro Sign LOI for Hilltop Gold Project, Alaska

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 11, 2015) - Northern Empire Resources Corp. (TSX VENTURE:NM) ("Northern Empire"), today announced the signing of a letter of intent ("LOI") with Sonoro Metals Corp. ("Sonoro"), pursuant to which Sonoro has been granted the option to acquire a 60% interest in Northern Empire's 7,840 acre Hilltop Gold Project ("Hilltop") located 115km south of Fairbanks, Alaska, USA.

To exercise the option and earn its 60% interest in the Hilltop Gold Project, Sonoro will expend C$3,000,000 on exploration activities to advance the project, and issue 1,000,000 Sonoro shares to Northern Empire, prior to December 31, 2019. During the term of the option Northern Empire will be the operator of the project.

Northern Empire's chairman, John Robins, stated, "The Hilltop Gold Project is a very compelling gold project located in the Tintina Gold Belt, one of North America's most prolific gold regions. With the signing of this agreement, Northern Empire is executing on its business strategy to identify high quality projects and mitigate its risk profile through the joint venture model. We are pleased to have the opportunity to work with Sonoro as we advance the property."

About the Hilltop Gold Project

]Northern Empire holds a 100% interest in the block of claims forming the Hilltop Gold Project within the broader Richardson Gold District (excluding placer gold). Hilltop is an exploration stage gold project located 115 kilometers southeast of Fairbanks, Alaska and 40 kilometres northwest of Delta Junction in east-central interior Alaska. Hilltop is located approximately 75 km from Sumitomo's Pogo mine (4.973 million ounces at 12.5 g/t gold; http://www.sumitomocorp.co.jp/files/topics/25649_ext_31_en_0.pdf ) and 135 south of Kinross's Fort Knox mine (3.8 million ounces at 0.45 g/t Au; http://www.kinross.com/operations/operation-fort-knox-alaska-usa.aspx ). The 7,840 acre (31 km2) Hilltop property is bordered on the south by the all-weather and paved Richardson Highway. In addition, the property is proximal to both a high power electrical transmission line and the Trans-Alaska Pipeline. Access into the interior of the property from the Richardson Highway is via a new system of logging roads and trails which makes most points within the Hilltop project area accessible for exploration activities.

To view a map of the Hilltop Gold Project, please visit the Richardson project section of Northern Empire's website at http://www.northernemp.com/projects/richardson/.

William J. (Bill) Cronk, P.Geo., is the qualified person who reviewed and approved the technical information contained in this news release.

Terms of the Option Agreement

To exercise the option and earn its 60% interest in the Hilltop Block, Sonoro must expend C$3,000,000 on exploration activities to advance the Hilltop Block and issue 1,000,000 Sonoro shares to Northern Empire, prior to December 31, 2019, as per the following schedule:

  • within 60 days of the execution of the letter of intent and subject to TSX-V approval, issue to Northern Empire 250,000 common shares of Sonoro;

  • by December 31, 2015 pay to Northern Empire C$250,000 to be applied toward exploration expenditures on Hilltop;

  • by December 31, 2017 issue to Northern Empire an additional 250,000 Sonoro shares, and pay to Northern Empire an additional C$500,000 to be applied toward exploration expenditures on Hilltop;

  • by December 31, 2018 issue to Northern Empire an additional 250,000 Sonoro shares, and pay to Northern Empire an additional C$750,000 to be applied toward exploration expenditures on Hilltop; and

  • by December 31, 2019 issue to Northern Empire an additional 250,000 Sonoro shares, and pay to Northern Empire an additional C$1,500,000 to be applied toward exploration expenditures on Hilltop.

The agreement is subject to receipt of all necessary regulatory approvals, including the acceptance of the TSX Venture Exchange.

About Northern Empire

Northern Empire is a newly formed company which will follow the "Project Generator" business model to take advantage of the depressed market conditions in the resource sector to acquire low acquisition and low holding cost properties with significant exploration potential.

A Project Generator identifies, acquires, and performs early stage exploration on compelling exploration targets before finding project partners to bear the financial risk associated with advanced exploration.

Northern Empire's experienced board and management team feels that executing the Project Generator business model is the most practical way to provide investors the potential excitement and value creation of mineral discoveries, without the financial risks and equity dilution of standard exploration programs.

ON BEHALF OF THE BOARD OF NORTHERN EMPIRE RESOURCES CORP.

Jim Paterson, Director

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.

This press release includes "forward-looking statements" including forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Northern Empire Resources Corp. The option to Sonoro described above is subject to a number of conditions precedent, and there is no assurance that (i) all conditions will be satisfied, (ii) the option will occur on the bases outlined above, or close at all; or (iii) if closed, that the option will be exercised. Statements regarding mineral exploration operations and objectives are subject to risk, including, but are not limited to, exploration and geologic risk, inflation and costs of goods and services, property title issues and regulatory approvals. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Northern Empire does not assume the obligation to update any forward-looking statement, except as required by applicable law.

Contact Information

  • Northern Empire Resources Corp.
    Jeff Sundar
    Corporate Development
    604 764 5944