Vancouver, BC -- Northern Vertex Mining Corp. (the "Company") (TSX.V: NEE, OTCQX: NHVCF) has received a notice of arbitration from Patriot Gold regarding two matters pertaining to their 2011 earn-in agreement ("2011 Agreement") under which the Company can earn a 70% interest from Patriot in the Moss Mine Gold-Silver project, Mohave County, Arizona, USA.
The first matter is a claim by Patriot that some part of the gold and silver sales from the 2013 pilot plant recovery test program constitutes "net operating profit" and so accrues to Patriot under the 2011 Agreement. Northern Vertex has amply demonstrated that there was no profit from the pilot plant operations and none were ever intended because the pilot program was designed for the limited objective of proving the recoverability of metals by leach process.
The second matter is a dispute about the scope of the "bankable feasibility study" ("BFS") as that (non-NI 43-101 compliant) term is specifically used in the 2011 Agreement. That agreement was assigned to Northern Vertex in 2011 by the US party which previously held the earn-in rights. Northern Vertex is required to deliver the BFS as defined in the 2011 Agreement by March 2016 in order to complete its earn-in requirements. Northern Vertex views the BFS definition as a customary one. The 2011 Agreement affords Northern Vertex sole discretion about technical matters including mine development. Patriot has also raised other technical concerns about the BFS. The Company believes that its planned approach to the BFS represents a cogent, lower risk, and methodical approach to demonstrating the feasibility of the project.
Dick Whittington, Northern Vertex President & CEO, commented on the arbitration: "We are disappointed that Patriot has decided to go this route after our achievements in demonstrating the technical and economic merits of the Moss Mine Project, in particular, the success of the proposed recovery technology. However, we have clearly reached an impasse with Patriot and so we will welcome an independent and technically qualified assessment of these issues."
About Northern Vertex and the Moss Mine Project
Northern Vertex Mining Corp. is a Canadian based exploration and mining company focused on the reactivation of the Moss Mine Gold-Silver Project located in NW Arizona, USA where the Company has the right to earn-in to a 70% property interest through a Joint Venture with Patriot Gold Corp. The Moss Mine Project is located approximately seven miles due east of Bullhead City and is owned 100% by Patriot Gold, The Company has the right to earn a 70% interest in the project from Patriot Gold by completing an $8.5 million investment over five years and a bankable feasibility study. Subsequent to the earn-in, financing of the project will be on a proportional basis. The Company has addressed the investment requirement of the earn-in and is in the process of completing the required feasibility study. The Company intends to submit the feasibility study to Patriot towards the end of Q2, 2015, after which the 70:30 joint venture is formed Patriot will be obligated to contribute its 30% of all expenditures going forward.
The Moss Mine Gold-Silver Project is an epithermal, brecciated, low sulphidation quartz-calcite vein and stockwork system which extends over a strike length of 1,400 meters and has been drill tested to depths of 370 meters below surface. It is a potential heap leach, open pit project being advanced under a three-phase business plan, specifically designed to ensure that technical, economic, permitting and funding requirements are met prior to each phase proceeding. The Company's management comprises an experienced management team with a strong background in all aspects of acquisition, exploration, development, operations and financing of mining projects worldwide. The Company is focused on working effectively and respectfully with our stakeholders in the vicinity of the historical Moss Mine and enhancing the capacity of the local communities in the area.
ON BEHALF OF THE BOARD OF DIRECTORS
J.R.H. (Dick) Whittington, President & CEO
For further information, please visit www.northernvertex.com
or contact Investor Relations at: 604-601-3656 or 1-855-633-8798
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements:The information in this news release has been prepared as at January 23, 2015. Certain statements in this news release, referred to herein as "forward-looking statements", constitute "forward-looking statements" under the provisions of Canadian provincial securities laws. These statements can be identified by the use of words such as "expected", "may", "will" or similar terms.
Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by the Company as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Many factors, known and unknown, could cause actual results to be materially different from those expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as otherwise required by law, the Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which any such statement is based.
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 US investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. US 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, the completion of the Private Placement, the proposed use of the proceeds of the Private Placement, 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.
2015 number 01