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New Break Resources Ltd. (CSE: NBRK) ("New Break" or the "Company") is pleased to announce that the Company has increased its land position to the west and northwest of its main Moray property ("Moray") through the acquisition of approximately 4,719 hectares and staking of approximately 473 hectares of additional mineral claims. Moray is located approximately 49 km southeast of Timmins, Ontario, where the Company's recent maiden drilling program resulted in a new gold discovery. The newly acquired and staked minerals claims are shown as the "Acquired Claims" in orange and "Staked Claims" in red in the figure below and along with the "Existing Claims", represent 22,275 hectares of mineral claims owned by New Break.
(Figure 1 - Moray Project property map)
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The new claims cover approximately 5,192 hectares, including 473 hectares comprised of 22 single cell mineral claims which were acquired by New Break at a cost of $1,100 from the Ontario Ministry of Mines when the ground became open for staking. The additional 4,719 hectares (the "Acquired Claims") are being acquired pursuant to a mining claim acquisition agreement (the "Agreement") entered into by New Break with two arm's length individuals (the "Vendors").
Under the terms of the Agreement, the Vendors will receive a cash payment of $20,000 and will be issued 500,000 common shares of New Break (the "Consideration Shares") at closing in exchange for 100% ownership in the Acquired Claims, which will also be royalty free. The Consideration Shares are subject to an escrow arrangement from which 50% of the Consideration Shares will be released four months and one day following closing and 50% six (6) months from closing. All cash payments and issuances of Consideration Shares will be split 50% and 50% corresponding to the respective ownership percentages of the Vendors. The acquisition of the Acquired Claims is subject to the approval of the Canadian Securities Exchange.
Michael Farrant, President of New Break stated, "This property acquisition bridges the gap that existed between our main Moray property and many of the mineral claims that we own to the west of Moray and expands our property footprint to the northwest of Moray. In Bartlett Township, we hold a large number of claims that are contiguous with the Texmont nickel sulphide project operated by Canada Nickel Company Inc. Overall, we believe that New Break's property position to the west and northwest of Moray, holds the geologic potential for additional mineral discoveries in addition to our recent gold discovery in the Zavitz zone at Moray."
Comment on Recent Staking of Mineral Claims to the North and East of Moray
The Company is aware of the recent staking of mineral claims to the north and east of New Break's Moray property by another public company. These claims had sat open for staking for some time and had been evaluated by New Break's technical team for potential staking. New Break concluded that these claims held little to no potential for mineral discovery based on their underlying geology and absence of any known structures necessary for offering the possibility of hosting an economic orebody. Staking these claims would have only resulted in additional holding costs and offered no opportunity for improving the geologic potential of the Moray project.
Qualified Person
Peter C. Hubacheck, P. Geo, consulting geologist to New Break, and a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the technical disclosure in this news release.
About New Break Resources Ltd.
New Break is a proudly Canadian mineral exploration company focused on its Moray gold project located 49 km south of Timmins, Ontario, in a well-established mining camp within proximity to existing infrastructure, 32 km northwest of the Young-Davidson gold mine, operated by Alamos Gold Inc. Shareholders also remain leveraged to exploration success in Nunavut, a promising region in Canada for gold exploration and production, through New Break's 20% carried interest in the Sundog gold project. The Company is supported by a highly experienced team of mining professionals. Information on New Break is available under the Company's profile on SEDAR+ at www.sedarplus.ca and on the Company's website at www.newbreakresources.ca. New Break trades on the Canadian Securities Exchange (www.thecse.com) under the symbol CSE: NBRK.
For further information on New Break, please visit www.newbreakresources.ca or contact:
| William Love, Chief Executive Officer Tel: 519-272-6312 E-mail: wlove@newbreakresources.ca | Michael Farrant, President and CFO Tel : 416-278-4149 E-mail: mfarrant@newbreakresources.ca |
No stock exchange, regulation securities provider, securities commission or other regulatory authority has approved or disapproved the information contained in this news release.
CAUTIONARY NOTE REGARDING FORWARD LOOKING INFORMATION
Except for statements of historic fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements including, but not limited to receipt of regulatory and stock exchange approvals, grants of equity-based compensation, renouncement of flow-through exploration expenses, property agreements, timing and content of upcoming work programs, geological interpretations, receipt of property titles, an inability to predict and counteract the effects global events on the business of the Company, including but not limited to the effects on the price of commodities, capital market conditions, restriction on labour and international travel and supply chains etc. Forward-looking information addresses future events and conditions and therefore involves inherent risks and uncertainties, including factors beyond the Company's control. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to update publicly or otherwise any forward-looking information, except as may be required by law. Additional information identifying risks and uncertainties that could affect financial results is contained in the Company's financial statements and management's discussion and analysis (the "Filings"), such Filings available upon request.
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