Northern Gold Mining Inc.

Northern Gold Mining Inc.

April 16, 2013 09:19 ET

Northern Gold Acquires Additional Property in Garrison, Holloway and Michaud Townships

TORONTO, ONTARIO--(Marketwired - April 16, 2013) - NORTHERN GOLD MINING INC. (TSX VENTURE:NGM) ("Northern Gold" or the "Company") is pleased to announce that it has entered into four mining claim acquisition agreements pursuant to which Northern Gold has acquired a 100% interest in two claims located each of the Garrcon East zone in Garrison Township, Ontario (the "Garrison Claims"), one mining claim in Holloway Township located approximately five kilometres north of the Company's Harker-Holloway Property (the "Holloway Claim") and five mining claims located in Michaud Township (the "Michaud Claims") and contiguous to the north-west of Northern Gold's existing Michaud claims. The acquisition of the Garrison Claims, the Holloway Claim and the Michaud Claims increases Northern Gold's expanding land package to a total of approximately 54,222 acres in the Larder Lake Mining District.

Pursuant to the terms of a mining claim acquisition agreement Northern Gold can acquire the Garrison Claims in exchange for:

  • CDN$25,000;

  • 25,000 common shares of Northern Gold; and

  • a one percent (1%) net smelter return royalty ("NSR") from production on the Garrison Claims, to be granted to vendor. Northern Gold shall have the right and option to purchase the NSR for the amount of $250,000.

In addition, pursuant to the terms of a mining claim acquisition agreement the Company can acquire the Holloway Claim in exchange for:

  • CDN$20,000; and

  • 200,000 common shares of Northern Gold.

  • a two percent (2%) NSR from production on the Holloway Claim, to be granted to vendors. Northern Gold shall have the right and option to purchase one-half of the NSR for the amount of $1,500,000.

Lastly, pursuant to the terms of two mining claim acquisition agreements the Company can acquire the Michaud Claims in exchange for an aggregate amount of $25,000.

The above-noted transactions are subject to receipt of all approvals required by the parties, including that of the TSX Venture Exchange (the "TSXV"). The securities to be issued in connection with the transaction will be subject to a four month hold period from the date of issuance.

About Northern Gold

Northern Gold is a TSXV-listed gold company based in Toronto, Ontario. The Company's main focus is the exploration and development of its prospective mineral properties of the Golden Bear Project in the Larder Lake Mining Division, northeastern Ontario. Led by an experienced management team, Northern Gold has a portfolio of advanced exploration projects, including the Jonpol and Garrcon Deposits and the newly acquired Buffonta Property. The recent property acquisitions including the Harker-Holloway Property and amalgamation with Victory Gold Mines Inc. add to the Company's regional consolidation strategy along the Destor-Porcupine Fault Zone.

CAUTIONARY STATEMENT: 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 Gold's objectives, goals or future plans, statements regarding exploration results and exploration plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, 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, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, 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 Gold's public documents filed on SEDAR. Although Northern Gold 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 news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Northern Gold 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.

Neither the TSX Venture Exchange ("TSXV") nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts 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.

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