JOINT
NEWS RELEASE
NORTHERN STAR
MINING CORP. BRITANNICA
RESOURCES CORP.
TSXV - NSM TSXV-
BRR
February 23, 2009
NORTHERN STAR AND
BRITANNICA TO JOINT VENTURE
McKENZIE BREAK
PROPERTY
Northern Star Mining
Corp. (“Northern Star”) and Britannica Resources
Corp. (“Britannica”) announce that Britannica has granted Northern Star an
option (the “Option”) to acquire an undivided 60% interest in
Britannica’s McKenzie Break property located in the Fiedmont and Courville
Townships of Quebec (the “McKenzie Break Property”) in consideration for
Northern Star funding Britannica’s final option payment of $400,000 in cash and
$100,000 in shares to Wesdome Gold Mines Ltd. (“Wesdome”) due March 2,
2009 pursuant to the option and purchase agreement dated March 2, 2007 between
Britannica and Wesdome. See Britannica’s news release of November 30, 2006 for
further details regarding the Wesdome option agreement.
The McKenzie Break property consists of 10 contiguous claims comprising
366 hectares, located in Fiedmont and
Tundra Gold, Placer Dome Canada, Western Quebec Mines Inc. and Wesdome
Gold Mines previously explored the McKenzie Break property. At least five known, flat-lying gold zones
have been identified (see Britannica’s news release January 30, 2007). One of these structures, the Number 4 Zone,
was partly drilled at 30-metre centres to a 120-metre depth displaying good
continuity of gold values (usually above average gold grade for the region).
This detailed drilling completed by Wesdome Gold Mines in 2004 outlined the
economic potential for gold easily accessed by decline (ramp). Britannica believes minimal additional
work would be required to expand these gold bearing structures, at depth. Britannica
has completed 9959.4 linear meters (41 holes) of diamond drilling to date
on the McKenzie Break Property.
Faced
with the impending $400,000 option payment and poor market conditions for
raising funds, Britannica approached Northern Star with a proposal to joint
venture the further exploration and development of the McKenzie Property in
consideration for Northern Star funding the final option payment to Wesdome.
Britannica and Northern Star share two common directors and Northern Star owns
approximately 9% of the issued and outstanding shares of Britannica.
Upon
exercise of the Option, Northern Star and Britannica will enter into a joint
venture for the further exploration and development of the McKenzie Break
Property with Northern Star as the initial operator. The initial interests of
the parties will be Northern Star 60% and Britannica 40% with Northern Star
agreeing to fund the first $1,500,000 in exploration expenses on behalf of the
joint venture. Thereafter, the parties will be responsible for funding their
proportionate share of future exploration and development costs, subject to
dilution in the event either party fails to contribute its proportionate share.
The joint venture agreement will also provide that if either party’s interest is
reduced to 5% or less, such interest will automatically be forfeited to the
other party without consideration
The
Option is subject to the acceptance of the TSX Venture Exchange and the consent
of Wesdome.
ON BEHALF OF THE BOARD ON BEHALF OF THE
BOARD
NORTHERN
STAR MINING CORP. BRITANNICA
RESOURCES CORP.
“Michel David” “Jeffrey
Cocks”
Michel David President Jeffrey
Cocks President
FOR FURTHER INFORMATION PLEASE CONTACT:
Northern Star Mining Corp. TOLL FREE (800)
460-5031 or (819) 825-8088; FAX: (819) 825-1199 Website: www.nsmgold.com
Britannica
Resources Corp. TEL: (819) 825-9311; FAX: (819) 825-1199
Website: www.brrgold.com
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED THE PRESENT INFORMATION AND IS
NOT RESPONSIBLE FOR THE CONTENTS OF THIS NEWS RELEASE.
This news
release contains forward-looking statements, which relate to future events or
future performance and reflect management’s current expectations and
assumptions. Such forward-looking statements reflect management’s current
beliefs and are based on assumptions made by and information currently
available to the Company. Investors
are cautioned that these forward looking statements are neither promises nor
guarantees, and are subject to risks and uncertainties that may cause future
results to differ materially from those expected. These
forward-looking statements are made as of the date hereof and, except as
required under applicable securities legislation, the Company does not assume
any obligation to update or revise them to reflect new events or circumstances.