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CALGARY,
March 24, 2014 /CNW/ - High North
Resources Ltd. (TSXV: HN) (the "Company" or "High
North") is pleased to announce that it has entered into an
amending agreement on March 21, 2014
(the "Agreement") with Gamma Ventures Inc., Tiger Moth
Energy Inc., Triple Pacer Resources Ltd. and McCowan Exploration
Management Ltd. (the "Farmors"). The Agreement reduces the
rate of the overriding royalty (the "Overriding Royalty")
payable under three farmout agreements between the Company and the
Farmors (the "Farmout Agreements").
The Agreement encompasses the Company's McLean
Creek Block "A" Area, the McLean Creek Block "B" Area, the McLean
Creek Block "C" Area, the Sturgeon
Lake/Snipe Lake Block "D" Area and Block "H" and "I". (the
"Farmout Lands"). The Farmout Agreements cover approximately
100 sections of land.
Under the terms of the Agreement, the Farmors
have agreed to reduce the Overriding Royalty on the Farmout Lands
from 8 percent to 5 percent and have agreed to increase the
Overriding Royalty on the area of mutual interest lands ("AMI
Lands") from 2.5 percent to 4 percent.
As consideration for the amendment of Overriding
Royalty, the Company intends to make the following payments to the
Farmors: (i) $1,000,000 by
April 15, 2014, and (ii) an
additional $4,000,000 by June 30, 2014 (collectively, the
"Payments"). If the Company makes the Payments, then the
changes in the Overriding Royalty on the Farmout Lands and AMI
Lands shall come into effect as of July 1,
2014.
Concurrently, the Company and the Farmors also
executed an amending agreement to delay certain of the Company's
drilling obligations under the Farmout Agreements until
July 2014.
High North is a Calgary-based company that explores, develops
and produces oil and natural gas in Western Canada. High North trades on the TSX
Venture Exchange under the symbol HN.
Forward-looking Statements and
Information
This news release contains certain statements
that may be "forward-looking statements" or "forward-looking
information" within the meaning of applicable securities laws.
Forward-looking statements are statements that are not historical
facts and are generally, but not always, identified by the words
"expects", "plans", "anticipates", "believes", "intends",
"estimates", "projects", "potential" and similar expressions, or
that events or conditions "will", "would", "may", "could, "should"
or "shall" occur. In particular, but without limiting the
foregoing, this news release contains forward-looking statements or
information pertaining to, among other things, future growth,
future royalty payments, the payment of consideration, anticipated
changes to the Overriding Royalty and the Company's future drilling
obligations. Although High North believes the expectations
expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of
future performance and actual results may differ materially from
those in forward-looking statements. Forward-looking statements are
based on the beliefs, estimates and opinions of High North's
management on the date the statements are made. Except as required
by law, High North undertakes no obligation to update these
forward-looking statements in the event that management's beliefs,
estimates or opinions, or other factors, should change.
The forward-looking statements contained
in this news release are made as of the date of this news release,
and the Company does not undertake any obligation to update
publicly or to revise any of the included forward-looking
statements, whether as a result of new information, future events
or otherwise, except as expressly required by securities
law.
Neither the 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.
SOURCE High North Resources Ltd.