Northern Gold Mining Inc.

Northern Gold Mining Inc.

May 07, 2013 06:54 ET

Northern Gold Acquires Champagne Property

TORONTO, ONTARIO--(Marketwired - May 7, 2013) - NORTHERN GOLD MINING INC. (TSX VENTURE:NGM) ("Northern Gold" or the "Company") is pleased to announce that, further to its press release of December 19, 2012, it has entered into a definitive agreement (the "Acquisition Agreement") with Champagne Resources Limited ("Champagne") pursuant to which Northern Gold has acquired a 100% interest in 21 unpatented mining claims totaling approximately 1,550 acres of land located in Guibord, Michaud and Holloway Townships, Ontario (the "Champagne Property").

Pursuant to the terms of the Acquisition Agreement the Company acquired the Champagne Property in exchange for:

  • CDN$250,000;

  • the transfer of a 70% interest 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 one percent (1%) net smelter return royalty (the "NSR") from production on the Champagne Property, 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.

Northern Gold will retain a 30% participating interest in the Kirana Property. If at any time, either party's interest is reduced to 10% or less, such interest shall be surrendered and the forfeiting party shall be granted a one percent (1%) NSR from production on Kirana Property. The non-forfeiting party shall have the right and option to purchase the entire 1% NSR for $1,000,000.

In addition, the Company announces that Nuno Brandolini has been appointed Chairman of the Company effective May 6, 2013, succeeding Stephen McIntyre, who will retain his position as a director of the Company.

Mr. Brandolini has been a director of the Company since January 2012. He is a general partner of Scorpion Capital Partners, L.P., a private equity firm based in New York, New York and organized as a small business investment company (SBIC). Prior to forming Scorpion Capital and its predecessor firm, Scorpion Holdings Inc., Mr. Brandolini served as Managing Director of Rosecliff, Inc., a leveraged buyout fund co-founded by Mr. Brandolini in 1993. Prior to 1993, Mr. Brandolini was a Vice-President in the investment banking department of Salomon Brothers, Inc., and a Principal with the Batheus Group and Logic Capital, two venture capital firms. Mr. Brandolini began his career as an investment banker with Lazard Frères & Co.

Mr. Brandolini was awarded a law degree by the University of Paris and received an M.B.A. from The Wharton School of the University of Pennsylvania.

About Northern Gold

Northern Gold is a TSX Venture Exchange-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 acquisition of the Champagne Property, 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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