> Noront Resources Ltd. (TSX VENTURE:NOT) ("Noront") and WSR Gold Inc. (TSX VENTURE:WSR) ("WSR") are pleased to announce the signing of a definitive agreement among Noront, WSR and Golden Valley Mines Ltd. ("Golden Valley") providing WSR and Noront the option to acquire, from Golden Valley, an aggregate 70% legal and beneficial interest (the "Option") in the Golden Valley property located in the James Bay Lowlands region of Northern Ontario (the "Property"). WSR will be the operator of the project. The Property is located in the northern portion of the Ring of Fire and consists of 40 unpatented mining claims, totaling 559 units or 8,944 hectares strategically located with respect to the recent volcanic hosted massive sulphide discovery of Metalex Ventures Inc. in JV with WSR.
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> In order for Noront to acquire its 35% interest in the Property, Noront will be required to make payments to Golden Valley totaling $175,000 (or $350,000 in the aggregate with the payments from WSR), to be satisfied by the payment by Noront of a combination of $25,000 cash and 56,174 common shares of Noront, valued at $175,000. In addition to these payments, Noront and WSR will also be required to incur aggregate exploration expenditures on the Property of at least $5,000,000 over a three year period (of which $1,000,000 must be expended in the first year).
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> Upon Noront and WSR earning their collective 70% interest in the Property, the three parties shall enter into a joint venture agreement. The Joint Venture Agreement will require Noront and WSR to fund all project costs up to the start of commercial production from the Property. Following the commencement of commercial production, any cash flow after payment of operating expenses and third party financing costs will be distributed to Noront and WSR until such time as the aggregate of their project costs, including interest, up to the commencement of commercial production have been repaid, following which such cash flow shall be distributed to the parties on a pro rata basis.
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> The transaction remains subject to the approval of the TSX Venture Exchange and execution of the definitive option agreement. Noront is a tier 2 junior resource company on the TSX Venture Exchange, trading symbol NOT, with 129,824,783 shares issued to date.
