VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 28, 2013) - Northern Lion Gold Corp. (the "Company") (TSX VENTURE:NL)(FRANKFURT:N3E) announces that it has entered into a non-binding letter of intent (the "LOI") with a subsidiary of Centerra Gold Inc. ("Centerra") with respect to an option/joint venture transaction.
Pursuant to the LOI, Centerra can earn up to 70% interest in several of the Company's exploration permits (the "Option Properties") located in the Larnaca and Paphos Districts of the Republic of Cyprus. The LOI provides that Centerra would advance funds to initiate exploration activities on the Option Properties. Funding would go towards mobilizing a ground-based EM geophysical survey over the prospective Lysos permit. Lysos was identified by a 2011 Versatile Time-Domain Electromagnetic and aeromagnetics (VTEM) survey, conducted by Geotech Airborne Malta Ltd, and consists of a cluster of 7 anomalies within an area of 17 square kilometres with the largest anomaly over 3.2 kilometres long (reported July 17, 2012). The ground-based geophysical survey is designed to follow-up on the previous VTEM survey results and identify buried massive sulphide targets in underexplored areas of western Cyprus.
The Company continues to hold several permits within the Republic of Cyprus that remain outside of this LOI.
The completion of the proposed transaction discussed in the LOI is subject to a number of conditions including, negotiation and execution of a definitive agreement, receipt of all required regulatory approvals, including approval of the TSX Venture Exchange and completion of due diligence investigations by Centerra.
Company President and CEO, John Lando, commented: "This transaction with a leading gold producer provides validation of the geology and geography of the region. Cyprus has a long history of mining with very little exploration work completed over the last forty years. This strategic alliance will contribute to the development of a systematic exploration program to discover additional buried massive sulphide bodies."
Centerra is a gold mining company focused on operating, developing, exploring and acquiring gold properties in Asia, the former Soviet Union, Turkey and other emerging markets worldwide. Centerra is a leading North American-based gold producer and is the largest Western-based gold producer in Central Asia. Centerra's shares trade on the Toronto Stock Exchange (TSX) under the symbol CG. The Company is headquartered in Toronto, Ontario, Canada.
The Company's field activities in Cyprus are under the direction of Robert Johnston, P.Geo. (BC), and "qualified person", as defined by National Instrument 43-101. Mr. Johnston is responsible for the technical content of this news release.
About Northern Lion
Northern Lion is committed to building a strong portfolio of projects within mining-friendly and infrastructure-rich areas of Europe. Northern Lion currently controls over 40 km2 of exploration permits in the Republic of Cyprus and is actively pursuing other opportunities within the region.
NORTHERN LION GOLD CORP.
John Lando, President
This news release includes "forward-looking information", as such term is defined in applicable securities laws. The forward-looking information includes, without limitation, exploration plans of the Company, the satisfaction of conditions necessary to complete the transaction contemplated in the LOI, including without limitation the negotiation and execution of a definitive agreement, receipt of all required regulatory approval, and the completion of due diligence by Centerra, the success of exploration activities and other similar statements concerning anticipated future events, conditions or results that are not historical facts. These statements reflect management's current estimates, beliefs, intentions and expectations; they are not guarantees of future performance. The Company cautions that all forward-looking information is inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company's control. Such factors include, among others, risks and uncertainties relating to exploration and development; the ability of the Company to obtain additional financing; the Company's limited operating history; the need to comply with environmental and governmental regulations; potential defects in title to the Company's properties; fluctuations in currency exchange rates; fluctuating prices of commodities; operating hazards and risks; competition; and other risks and uncertainties. Accordingly, actual future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. All statements are made as of the date of this news release and, except as required by law, the Company is under no obligation to update or alter any forward-looking information.
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