Northern Shield Resources to Receive $1.4 Million in Cash and Royalties From Sale of Wabassi Project

Northern Shield Resources Inc. (TSXV:NRN) has sold its remaining interest in the Wabassi property to private U.S. company Great Lakes Resources LLC for $1.4 million cash and royalties. As per the sale agreement, Northern Shield transferred its 49 percent interest in the Wabassi property and its 59 percent interest in the adjacent Max property to Great Lakes for a cash payment of $1.4 million.

As quoted in the press release:

Northern Shield will maintain a 0.5% net smelter return (“NSR”) royalty on the Wabassi property and a 0.6% NSR royalty on the Max property. Half of each NSR royalty are subject to a buy-back. Northern Shield also granted Great Lakes a First Right of Refusal on the Storm Property in which Northern Shield still maintains a 100% interest. This transaction supersedes and replaces an option agreement signed by Great Lakes in November 2013 whereby Great Lakes could have earned a 24% interest in Northern Shield’s 49% interest in Wabassi (see press release dated November 23, 2013). Northern Shield had received $400,000 from Great Lakes in consideration of the grant of the Option. Great Lakes had incurred expenditures of approximately $750,000 on further exploration efforts on the Wabassi property since Northern Shield granted the option.

Northern Shield CEO, Ian Bliss, said:

Although a project with great potential, by selling Wabassi, the company can focus on its existing PGE projects and new PGE projects. With mine closures due to escalating mining costs and labour strikes in South Africa which produces 72% of the world’s platinum and 37% of the world’s palladium; and the likelihood of sanctions against Russia, which produces 42% of the world’s palladium and 14% of the world’s platinum, there is an urgent need to find PGEs in Canada. Northern Shield is regarded around the world as a leader in grass-roots PGE exploration. In particular we have a thorough understanding of the PGE potential of the Labrador Trough where much of our attention is focused at the moment.

Click here to read the Northern Shield Resources Inc. (TSXV:NRN) press release