May 28 2013
Northern Superior Resources Inc. ("Northern Superior" or the "Company") is pleased to announce that it has entered into a binding agreement to acquire the Waconichi Gold property from Murgor Resources Inc. ("Murgor"). The Waconichi Gold property consists of 306 claims covering an area of approximately 17,588 hectares and the largest cluster of claims are adjacent to the Company's Croteau Est gold property located to the south.
This acquisition, combined with the Company's adjoining Croteau Est gold property, and its newly acquired holdings south and northeast (see Figure 1), of Croteau, will give Northern Superior a strategic property position of a large, contiguous, and easily accessible land package in the highly prospective Chibougamau- Chapais gold-copper camp of west-central Québec. The combined properties (now referred to simply as the Croteau Est property) consists of 513 claims that encompasses an area of approximately 22,576 hectares. The Croteau Est property is located just 10 kilometres northwest of Chibougamau, Québec. The main block of claims is accessible year round by three primary roads, extending from each a labyrinth of forestry roads.
Dr. T.F. Morris, President and CEO of Northern Superior states: "Exploration by Northern Superior on the combined Croteau Est/Waconichi property to date has clearly demonstrated that there is at least one large structure (the Croteau-Bouchard Shear Zone- CBSZ) that has the capacity to host large volumes of gold-bearing fluids. Geophysical and structural studies also indicate the presence for additional structures and "traps" elsewhere on the property that Northern Superior will begin to systematically evaluate through prospecting and geochemical surveys this summer. The Company is very excited about the opportunities that the newly-expanded Croteau Est property will present and looks forward to initiating its exploration programs."
Northern Superior previously held an option to earn only a 70% interest in the Waconichi Gold property but was able to renegotiate its arrangement with Murgor to acquire 100% of the property. Under the former option, to earn its 70% interest Northern Superior would have been required to pay Murgor a further $110,000 in cash, issue 800,000 additional Northern Superior shares and expend approximately $950,000 more on exploration on the Waconichi claims over the next two years.
Under the renegotiated arrangement, Northern Superior will acquire a full 100% interest in the property by making a one-time cash payment of $225,000 and by granting Murgor a 1% NSR royalty on a majority of the Waconichi claims. Northern Superior will no longer be required to issue further shares to Murgor or incur further expenditures on the property.
The 1% NSR royalty granted to Murgor will cover all of the claims purchased from Murgor except for 7 claims (comprising approximately 287 hectares) which were already subject to a prior 2% NSR royalty in favor of Reme Charbonneau, the prospector who originally staked those 7 claims. Northern Superior will have the right to repurchase half of the Murgor 1% NSR royalty (reducing it to a 0.5% NSR royalty) at any time, for $1,000,000. Similarly, Northern Superior will have the right to repurchase half of the Charbonneau 2% NSR royalty (reducing it to a 1% NSR royalty) at any time, for $1,000,000. In either case, should Northern Superior exercise its buy-back right, it will then have a right of first refusal with respect to the remaining NSR royalty.
Source: http://www.nsuperior.com