|Vancouver, B.C. - Northern Vertex Capital Inc. (TSX.V:NEE) ("Northern Vertex") reports that it has received conditional approval from the TSX Venture Exchange regarding the previously announced letter agreement (see news release dated November 15, 2010) with Kootenay Gold Inc. (TSX.V:KTN) ("Kootenay") whereby Northern Vertex has the right to earn an undivided 60% interest in the Copley Gold Property located in the Nechako Plateau of Central British Columbia in exchange for issuing an aggregate total of 800,000 common shares of Northern Vertex to Kootenay; and financing $2.2 million of exploration expenditures on the property within a four-year period. The transaction is subject to approval by the TSX Venture Exchange ("TSX-V"). Northern Vertex is responding to additional information requested by the TSX-V and will remain halted until final approval is received.|
Overview of Gold potential of the Copley Property:
Terms of agreement
To fulfill the terms of the letter agreement, Northern Vertex must spend an aggregate total of $2.2 million on exploration over four years and issue up to 800,000 shares with 200,000 shares due on regulatory approval of the letter agreement and 200,000 common shares of Northern Vertex on or before the first year anniversary and each of the second and third anniversaries thereafter, of the execution date. Subsequent to exercise of the earn-in, Northern Vertex and Kootenay will form a 60/40 joint venture. Financing of further work on the Copley Gold property will be on a proportional basis under the direction of a management committee with voting rights proportional to ownership percentage. Either party may be diluted on the basis of a standard formula if they do not contribute to the planned programs. If either party is diluted below 10 per cent, their interest will convert to a 1.5-per-cent NSR (net smelter return) royalty. Mr. Kenneth Berry is a director and officer of both Northern Vertex and Kootenay.
A 43-101 Technical Report has been submitted for review with the TSX-V and once approved will be filed on SEDAR.
About Northern Vertex
Northern Vertex is currently reviewing various historic producing mine sites for acquisition. In addition, the Company is conducting systematic exploration on the Deer Creek Gold Property and the Copley Gold Property in British Columbia, Canada.
ON BEHALF OF THE BOARD OF NORTHERN VERTEX
For further information, please contact
Colin Clancy at Telephone: 604-601-3656
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.
Cautionary Note to US Investors: This news release may contain information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.