Northern Abitibi Completes Viking Property Sale to Spruce Ridge Resources and Files Early Warning Report
CALGARY, ALBERTA--(Marketwire - Oct. 29, 2012) - Northern Abitibi Mining Corp. (TSX VENTURE:NAI) ("Northern Abitibi") is pleased to announce that the sale of its 100% owned Viking Property to Spruce Ridge Resources ("Spruce Ridge") in exchange for up to 10,000,000 common shares in the capital of Spruce Ridge (the "Shares") plus cash payments has closed.
To earn a 100% interest in the Viking project Spruce Ridge must pay $200,000 in staged cash payments over 12 months and issue up to 10 million Shares to Northern Abitibi. To date, Spruce Ridge has made payments totalling $50,000 to Northern Abitibi and issued 5 million Shares at a deemed value of $0.12 per Share. Within 6 months Spruce Ridge must make an additional $50,000 payment, and within 12 months Spruce Ridge must pay another $100,000 (Spruce Ridge can elect to issue up to 50% of the final cash payment by issuing additional Shares) and issue up to 5 million Shares. If, on the date of payment, the Shares are trading between $0.25 and $0.50 cents the 12 month share issuance is reduced to 3 million Shares and if the Shares are trading above $0.50 cents the 12 month share price payment will be reduced to 2 million Shares. Northern Abitibi has a 100% property interest in the Viking Property subject to a 2% to 4% sliding scale net smelter royalty held by Altius Resources Inc.
Pursuant to this sale, Northern Abitibi now holds 5,000,000 Shares or 12.5% of Spruce Ridge's issued and outstanding common shares at the date hereof on a non-diluted basis. In 12 months, Northern Abitibi could hold up to 10,000,000 common shares of Spruce Ridge or up to 22.1% of Spruce Ridge's issued and outstanding shares at the date hereof on a non-diluted basis. Spruce Ridge may also elect to issue up to 50% of the final cash payment in shares.
The Shares were acquired pursuant to the exemption from the prospectus requirement in section 2.14 of National Instrument 45-106 and are held for investment purposes only and these investments will be reviewed on a continuing basis and holdings may be increased or decreased in the future.
Shane Ebert, President/Director
Except for the historical and present factual information contained herein, the matters set forth in this news release, including words such as "expects", "projects", "plans", "anticipates" and similar expressions, are forward-looking information that represents management of Northern Abitibi's internal projections, expectations or beliefs concerning, among other things, future operating results and various components thereof or the economic performance of Northern Abitibi. The projections, estimates and beliefs contained in such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Northern Abitibi's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, those described in Northern Abitibi's filings with the Canadian securities authorities. Accordingly, holders of Northern Abitibi shares and potential investors are cautioned that events or circumstances could cause results to differ materially from those predicted. Northern Abitibi disclaims any responsibility to update these forward-looking statements.
FOR FURTHER INFORMATION PLEASE CONTACT:
Northern Abitibi Mining Corp.
Northern Abitibi Mining Corp.
Jean Pierre Jutras