Northern Sun Mining Corp. (TSX:NSC) (formerly Liberty Mines Inc.) has entered into a binding custom milling term sheet with Wallbridge Mining Company Limited (TSX:WM) to provide for the custom milling of ore from Wallbridge's Broken Hammer mine. Pursuant to the terms of the agreement, Northern Sun will be responsible for the handling and milling of ore. The agreement is for approximately a one year term based on a minimum of 800 tonnes per day and milling is expected to begin on or about the first week of May 2014. The Company will generate both a gravity concentrate and a floatation concentrate which will then be conveyed to other smelters or refinery for further treatment. Waste from the ore after processing will be disposed of in the current tailings compound. Closing of the transaction remains subject to, among other things, the entering into a definitive agreement on or before February 7, 2014 and the receipt of all necessary regulatory approvals, as applicable.
David Rigg, President and CEO of Northern Sun, commented: "We are excited to have entered into this binding term sheet which will provide the Company with the means to generate positive cash flow to support our regional activities. We believe this is a well-timed opportunity to coincide with the reopening of the Mill due to our successful remediation activities. We would like to thank our employees who have worked faithfully to remediate the Redstone mill. Our toll milling arrangement represents a new start for the Redstone mill and a new employment opportunity in the Timmins area."
Qualified Persons
The technical and scientific content of this press release has been reviewed and approved by David M. Rigg, P.Geo., and qualified person under NI 43-101. As President and CEO of Northern Sun, Mr. Rigg is not considered independent.
