Northern Shield Signs Option Agreement With South 32

Northern Shield Resources (TSXV:NRN) has announced that it has signed a definitive Option Agreement and pre-negotiated Joint Venture Agreement with South32 Limited regarding its Huckleberry property in Northern Quebec.
As quoted in the press release:

Under the terms of the agreement South32 can earn a 50% interest in the Huckleberry property by incurring C$2,500,000 in exploration expenditures within the first two years of the agreement and by making an upfront cash payment to Northern Shield of C$200,000. On successfully earning a 50% interest, South32 can elect to increase its interest to 70% by incurring a further C$2,500,000 of exploration expenditures by the end of the third year. Northern Shield will be operator during the earn-in and be paid a management fee of 10% of the cost of all exploration programs.  Northern Shield’s interest will be free carried to the completion of a PEA (Preliminary Economic Assessment) study on the Huckleberry property. South32 will have a first right of refusal on Northern Shield’s neighbouring Séquoi Property.

Click here to read the full press release.