Toronto, Ontario – November 1, 2007;WSR Gold Inc. (TSXV:WSR) (“WSR”) and Noront Resources Ltd (TSXV:NOT) (“Noront”) are pleased to announce that they have entered into an option agreement pursuant to which WSR has been granted the option to acquire a 50% legal and beneficial interest in a property.The area will include 15 Claim Blocks, approximately 4,400 hectares (9,600 acres) in the “Ring of Fire”, McFauld’s Lake, Ontario, near Noront’s nickle copper discovery.
In order to acquire its interest in the property, WSR is required to:
- Issue to Noront an aggregate of 400,000 common shares on both parties receiving all required approvals including TSX Venture Exchange and Board of Directors approval of the Option Agreement;
- Incur aggregate exploration expenditures on the property of $5,000,000 over a three year period (of which $1,500,000 must be expended in the first year);
- Make cash payments to Noront totaling $400,000 within two years of receiving the above noted approvals of the Option Agreement (of which $200,000 must be paid in the first year, and any portion of the aggregate of $400,000 may be satisfied at the option of Noront, by the issuance to Noront of up to 800,000 common shares of WSR at a deemed price of $0.50 per share).
The transaction remains subject to required approvals on both sides including the approval of the TSX Venture Exchange and WSR’s Board of Directors.
Upon WSR earning its 50% interest in the property, WSR and Noront shall form a joint management committee to further develop the property and Noront shall act as Operator.
For further information please contact:
John Tait, President and Chief Executive Officer
WSR Gold Inc. (416) 628-5905