TORONTO, ONTARIO--(Marketwired - Dec. 12, 2013) - Northern Sun Mining Corp. (TSX:NSC) (formerly Liberty Mines Inc.) has entered into a binding custom milling term sheet with Wallbridge Mining Company Limited (TSX:WM) to provide for the custom milling of ore from Wallbridge's Broken Hammer mine. Pursuant to the terms of the agreement, Northern Sun will be responsible for the handling and milling of ore. The agreement is for approximately a one year term based on a minimum of 800 tonnes per day and milling is expected to begin on or about the first week of May 2014. The Company will generate both a gravity concentrate and a floatation concentrate which will then be conveyed to other smelters or refinery for further treatment. Waste from the ore after processing will be disposed of in the current tailings compound. Closing of the transaction remains subject to, among other things, the entering into a definitive agreement on or before February 7, 2014 and the receipt of all necessary regulatory approvals, as applicable.
David Rigg, President and CEO of Northern Sun, commented: "We are excited to have entered into this binding term sheet which will provide the Company with the means to generate positive cash flow to support our regional activities. We believe this is a well-timed opportunity to coincide with the reopening of the Mill due to our successful remediation activities. We would like to thank our employees who have worked faithfully to remediate the Redstone mill. Our toll milling arrangement represents a new start for the Redstone mill and a new employment opportunity in the Timmins area."
The technical and scientific content of this press release has been reviewed and approved by David M. Rigg, P.Geo., and qualified person under NI 43-101. As President and CEO of Northern Sun, Mr. Rigg is not considered independent.
About Northern Sun Mining Corp.
Northern Sun owns two former producing nickel mines and a large prospective land package in the Shaw Dome area, a prospective nickel belt near Timmins, Ontario. Northern Sun owns the Redstone Mill which has operated as the only nickel concentrator in this Region. The Mill was designed with two processing circuits which are permitted to operate in tandem at 1,500 tonnes per day ("tpd"), but with the flexibility to operate independently processing two different ore types, each at 750 tpd. In 2014, the Company intends to re-open the mill to offer toll milling services to a variety of deposits in the Timmins Camp and general area. For additional information please visit our website at www.northernsunmining.ca and follow us on Facebook, LinkedIn or on Twitter @NorthernSunMine.
REGULATORY NOTES AND CAUTIONARY STATEMENTS
This document includes "forward-looking statements", as defined under applicable securities laws. All statements, other than statements of historical fact, including statements regarding the impact of the custom milling agreement, the timing of the completion of the custom milling agreement and government approvals with respect to the environmental remediation, future plans and objectives of Northern Sun, and the timing and completion of necessary financing and its consequences are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Northern Sun's expectations are: insolvency risks; regulatory approvals; environmental risks and other risks inherent in the mining industry, as described in Northern Sun's public filings. Forward-looking statements speak only as of the date on which they are made. Northern Sun does not undertake to publicly update any such statement, except where required by securities regulations. Accordingly, readers should not place undue reliance on forward-looking statements.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained here.