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TORONTO, ONTARIO--(Marketwire - Nov. 16, 2012) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Northern Gold Mining Inc. ("Northern Gold" or the "Company") (News - Market indicators) is pleased to announce that it has entered into a definitive agreement with Trelawney Mining and Exploration Inc. ("Trelawney"), an indirect wholly-owned subsidiary of IAMGOLD Corporation, pursuant to which the Company has agreed to purchase a considerable amount of equipment from Trelawney in exchange for an aggregate of 6,000,000 common shares of Northern Gold. The purchase consists of, but is not limited to, surface and underground electrical distribution systems, ventilation and mine air heat systems, compressors, generators, longhole drills, a Jumbo drill, water treatment equipment, various pieces of mobile equipment including scooptrams and excavators, a Gekko Mill and miscellaneous office equipment.
Greg Gibson, President and Chief Executive Officer of the Company stated, "We are pleased to have acquired this equipment at an exceptional cost saving from Trelawney as it enables Northern Gold to establish its underground mine infrastructure and allows us to carry out our proposed advanced exploration program on the Jonpol Gold Deposit. We are quite familiar with this particular equipment and know that it is in excellent condition."
The transaction is subject to receipt of all necessary regulatory and corporate approvals, including the approval of the TSX Venture Exchange ("TSXV"). The securities to be issued in connection with the transaction will be subject to a four month hold period from the date of issuance.
About Northern Gold
Northern Gold Mining Inc. is a TSXV-listed, publicly traded junior resource company based in Toronto, Ontario, dedicated to the discovery and development of high value mineral deposits in the proven mining camps of Kirkland Lake and Timmins in Northeastern Ontario. Northern Gold is focused on developing two gold deposits on its 100% owned Garrison Gold Property. In addition to the advanced stage Jonpol and Garrcon Gold Deposits, the property hosts several other gold mineralized showings including the less advanced 903 gold mineralized area. The Garrison Gold Property has historical mining infrastructure at both the Jonpol and Garrcon Deposits, and producing mines are located near the property.
CAUTIONARY STATEMENT: This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, Northern Gold's objectives, goals or future plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, those risks set out in Northern Gold's public documents filed on SEDAR. Although Northern Gold believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Northern Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.