OTTAWA, May 22, 2018 /CNW/ - Northern Shield
Resources Inc. ("Northern Shield" or the "Company") [TSX-V: NRN] is
pleased to announce that, through its wholly owned subsidiary
Seabourne Resources Inc, it has signed an Option Agreement with a
prospector ("Prospector") that gives the Company the right to
acquire up to an 80% interest in the Five Island Property
("Property") in Nova Scotia. The
Five Island Property is adjacent to the claim groups the Company
acquired last week through map staking and the two are being
explored for Iron-Oxide-Copper-Gold ("IOCG")-type Co-Cu-Fe-Au
mineralization. The Five Island Property covers intensely altered
and fractured basalt at the contact of a granite believed to be of
Devonian/Carboniferous age. Stream sediment samples analysed by the
Nova Scotia Department of Natural Resources with up to 650 ppm
cobalt are located within the Property.
Under the terms of the Option Agreement which is subject to TSX
approval, Northern Shield can earn a 50% interest in the Property
by incurring $500,000 in expenditures
on the Property within two years. The Option Agreement also
contains cash payments totaling $52,000 and share issuances totaling 700,000
Company shares to the Prospector over three installments during the
initial two-year period.
Over an additional two-year period, Northern Shield can increase
its interest to 80% by incurring $1.5M in expenditures, while making $50,000 in cash payments and issuing 500,000
Company shares to the Prospector. The Prospector will retain a 1%
NSR of which half (0.5%) can be bought back by Northern Shield for
$1M.
Exploration is underway at the Shot Rock Gold Property. The
first phase of exploration consists of stream sediment sampling,
cursory mapping and rock sampling, mostly in the eastern portion of
the property.
The programs will be overseen by Christine Vaillancourt, P. Geo., the Company's
Chief Geologist and a Qualified Person under National Instrument
43-101.
Northern Shield Resources Inc. is a Canadian-based company
focused on generating high-quality exploration programs with
experience in many geological terranes. It is known as a leader in
executing grass roots exploration program for Ni-Cu-PGEs and
utilizing expertise and innovation toward working on other deposit
types. Seabourne Resources Inc. is a wholly-owned subsidiary of
Northern Shield focussing on epithermal gold and related deposits
in Atlantic Canada and
elsewhere.
Forward-Looking Statements Advisory
This news release contains statements concerning the
exploration plans at the Company's Nova
Scotia properties, acquisition targets, the Company's
capitalization and other goals, objectives, assumptions,
information or statements about future events, conditions, results
of exploration or performance that may constitute forward-looking
statements or information under applicable securities
legislation. Such forward-looking statements or information
are based on a number of assumptions, which may prove to be
incorrect.
Although Northern Shield believes that the expectations
reflected in such forward-looking statements or information are
reasonable, undue reliance should not be placed on forward‑looking
statements because Northern Shield can give no assurance that such
expectations will prove to be correct. Forward-looking
statements or information are based on current expectations,
estimates and projections that involve a number of risks and
uncertainties which could cause actual results to differ materially
from those anticipated by Northern Shield and described in the
forward‑looking statements or information. These risks and
uncertainties include, but are not limited to, risks associated
with geological, geometrical and geophysical interpretation and
analysis, the ability of Northern Shield to obtain financing,
equipment, supplies and qualified personnel necessary to carry on
exploration and the general risks and uncertainties involved in
mineral exploration and analysis.
The forward-looking statements or information contained in this
news release are made as of the date hereof and Northern Shield
undertakes no obligation to update publicly or revise any
forward‑looking statements or information, whether as a result of
new information, future events or otherwise, unless so required by
applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release
SOURCE Northern Shield Resources Inc.