Noront Resources Ltd.: New Option Agreement Burnt Hill Tungsten Project New Brunswick
Monday November 13, 9:20 am ET
TORONTO, ONTARIO--(CCNMatthews - Nov. 13, 2006) - Noront Resources Ltd. (Noront) (TSX VENTURE:NOT - News) has advised Limerick Mines Limited that Limerick is in default of its option agreement dated October 19th, 2005 granting Limerick the right to earn up to 65% of Noront's 100% owned Burnt Hill tungsten deposit. The option agreement called for Limerick to issue to Noront 8 million common shares and complete $1.5 million on exploration by October 19th, 2006 to earn a 50% interest in the project, neither of which has been completed. Noront considers this option agreement to be terminated and in this regard is pleased to announce that it has entered into a new option agreement with a private Ontario company (optionee) as at October 31st, 2006.
This new option agreement to earn the first 51% interest calls for exploration expenditures of $1.5 million over 3 years, $500,000 within 12 months from the date of the agreement and $500,000 in each of the next 2 years. Noront is further to receive 2.5 million shares of the Optionee and/or its assignee and cash payments of $150,000 payable as follows: $50,000 upon execution of the agreement and $50,000 within 12 months and a final payment of $50,000 within 24 months from the date of the agreement.
Noront granted a further option to the Optionee to earn a further 14% in the project by payment to Noront of $500,000 in cash or in shares equivalent of the Optionee and/or is assignee
The Optionee has covenanted and agreed to apply to have its shares listed on a recognized stock exchange or alternately transfer its rights under the option agreement, with Noront's consent, to a publicly trading vehicle listed on a recognized exchange within 6 months from the date of the option agreement.
An NI 43-101 compliant technical report on the Burnt Hill project, authored by Mr. Eugene Puritch P.Eng and Dr. Wayne Ewert P.Geo of P & E Consultants Inc., both qualified persons as defined by NI 43-101 has been completed, please see the company's web site for details of report at www.norontresources.com.
The Company has been advised that the Optionee's intention is to resume the exploration and redevelopment of the Burnt Hill Project. The Optionee intends to pursue the project to production and in order to facilitate this Mr. Norman Brewster the former manager of the Burnt Hill Project through his position as a partner of A.C.A. Howe International during the late 1970's has agreed to advise the Optionee from time to time.
The last underground development work provided approximately 13,600 tons (12,341 tonnes) of feed for a pilot plant set up at the site to provide testing of the "photometric ore sorter". Although the test results were considered positive a production decision was postponed due to a decrease in tungsten prices after completion of a pre feasibility study. Tungsten at the time of the pre feasibility study was trading at approximately $7.50US per lb and thereafter plunged to approximately $3.00US per lb, recent quotes for tungsten as at November 9th, 2006 were $16-$17 per lb. See www.metalprices.com. It also should be noted that earlier metallurgical testing confirmed that molydbenum and tin contained in the deposit may also be recoverable.
Stock Option Grant
The Company reports that at the latest annual meeting of the Company Mr David Graham B.Sc.was appointed to the Board of Directors. The Board of Directors has approved and granted to Mr. Graham 150,000 stock options at an exercise price of $0.15 expiring on October 27th, 2011.
Noront is a tier 2 junior resource company on the TSX Venture Exchange, trading symbol NOT, with 54,567,692 shares issued to date.
ON BEHALF OF THE BOARD OF DIRECTORS
"R. Nemis", President and Chief Executive Officer
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
