Northern Empire Makes Early Payment for Sterling Property
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Apr 3, 2017) - Northern Empire Resources Corp. (TSX VENTURE:NM) (the "Company" or "Northern Empire") today announced that it has made an early payment to Sterling Gold Mining Corporation ("SGMC") a wholly owned subsidiary of Imperial Metals, in the amount of US$1,250,000.
"With the success of our recent convertible note financing, we were pleased to advance the funds to Imperial Metals as a show of good faith," stated Michael Allen, President and CEO of Northern Empire. "This payment will be credited toward the final purchase price of the Sterling Property. The Company's team is reviewing the extensive geological database and has identified several high priority drill targets. Drilling is expected to commence shortly after the transaction is completed."
In exchange for the payment, plus a US$100,000 increase in the total purchase price, SGMC has agreed to grant the Company an irrevocable exclusivity period to complete the transaction to acquire the Sterling Property, with the same term as the Letter of Intent announced in the Company's February 15, 2017 news release. The total purchase price for the Sterling Property will now be US$10,100,000. The Company has paid a total of US$1,500,000 to date, which will be credited towards the purchase.
On March 30, 2017, the Company announced it had raised $5,193,900 through the issuance of interest free convertible debentures. Proceeds of the financing will be used to fund certain costs in connection with the Company's proposed acquisition of a 100% interest in the Sterling property from SGMC.
About the Sterling Project
The Sterling property is located approximately 100 miles NW of Las Vegas on the eastern flank of the Bare Mountains within the Walker Lane trend. The mine is accessed via highway I-95 and gravel roads.
The Sterling mine has previously operated as both an open pit and underground operation. Production records show that from 1980 to 2000 mining on the Sterling orebodies produced 194,996 oz gold ("Au") at an average grade of 7.44 g/t Au. Recoveries have averaged 88% without milling.
The Bureau of Land Management has issued a Finding of No Significant Impact ("FONSI") and approved the next phase of mining at Sterling. This permit was issued on May 12, 2016 and has an indefinite term.
To achieve the FONSI, Imperial Metals created designs for the new pits and heap leach facilities that Northern Empire will be able to use going forward;
Imperial Metals ceased underground mining of a separate orebody in 2015. Processing facilities, mine offices and staff are on site and are currently being used to rinse heaps from prior operations.
About Northern Empire
On February 15, 2017, Northern Empire announced that it entered into a letter of intent with Sterling Gold Mining Corporation, a wholly owned subsidiary of Imperial Metals Corp. to acquire a 100% interest in the Sterling property, located in Nye County, Nevada, and certain royalty rights for claims located in Nevada and California. The Sterling project is a fully permitted gold project with exceptional exploration potential and represents a unique opportunity for Northern Empire to rapidly transition from a grass roots explorer to developer.
ON BEHALF OF THE BOARD OF Northern Empire Resources Corp.
Michael G. Allen, President, CEO and Director
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
Certain information set forth in this news release contains "forward-looking statement", and "forward-looking information" under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements, which include the Company's expectations about the completion of the transaction with SGMC and the related financings, future performance based on current results and expected cash costs and are based on the Company's current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as "will", "expects", "anticipates", "believes", "projects", "plans", and similar expressions. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which, may cause the Company's actual performance and financial results in future periods to differ materially from any projects of future performance or results expressed or implied by such forward-looking statement. These risks and uncertainties include, but are not limited to: liabilities inherent in mine development and production; geological risks, the financial markets generally, the results of the due diligence investigations to be conducted by the Company, the ability of the Company to complete the related financings or obtain requisite TSXV acceptance. There can be no assurance that forward-looking statement will prove to be accurate, and actual results and future events could differ materially from those anticipate in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.
Contact
Northern Empire Resources Corp.
Michael G. Allen
President, CEO and Director
604 646 4524
Northern Empire Resources Corp.
Jeff Sundar
Director
604 764 5944