|October 03, 2013|
Northcliff Secures Todd Corporation as Financing Partner for Sisson Tungsten-Molybdenum Project
|October 3, 2013 Fredericton, New Brunswick - Northcliff Resources Ltd. ("Northcliff" or the "Company") (TSX: NCF) and Todd Minerals Ltd. ("Todd") are pleased to announce that they have entered into agreements for Todd to provide up to $39 million in funding for the Sisson Tungsten-Molybdenum Project (the "Sisson Project") located in central New Brunswick, Canada, in exchange for a direct interest in the Sisson Project and shares in Northcliff. Todd is a subsidiary of the family owned Todd Corporation, one of New Zealand's most successful companies and which has a growing portfolio of mineral investments.
Details of the investment by Todd are:
Investment in Northcliff
Sisson Project Interest
Northcliff President & CEO Chris Zahovskis said, "We are extremely pleased to have Todd join us at this important stage of the Sisson Project's advancement. Tungsten market fundamentals remain strong with robust prices and continued supply restrictions out of China. These factors underpin the investment case for advanced tungsten deposits in low risk jurisdictions. Todd is an important strategic investor in the Sisson Project as Northcliff sets out to permit, build and operate the Sisson mine in New Brunswick."
Todd Group CEO, Jon Young said, "Todd is pleased to be associated with the Sisson Project which, once developed, will be a significant new tungsten producer. The investment is consistent with Todd's strategy of partnering with proven operators to develop long-term projects."
Zahovskis also noted "The initial funding from Todd totaling up to $19 million is earmarked for ongoing environmental work to support the harmonized Environmental Impact Assessment process currently being undertaken by the federal and provincial governments, as well as furthering design and engineering studies to advance planning from the feasibility study completed earlier this year, sourcing project financing and off-take arrangements." The positive feasibility study on the Sisson Project (see Northcliff news release dated January 29, 2013) confirmed the technical and economic robustness of the long-life open pit development and its potential to be a strategic near-term tungsten development in a stable jurisdiction. The study, prepared by Samuel Engineering, Inc. estimated annual average production of 557,000 mtu WO3 contained in APT and 4.1 million pounds Mo contained in concentrates over 27 years of operation based on a 30,000 tonne per day mill throughput . The Sisson Project is expected to employ at least 300 people in New Brunswick with up to 500 during the construction phase.
Northcliff Chairman Marchand Snyman said "The investment by Todd, which has an excellent track record of managing and investing in diverse fields for more than a century is a testament to the work done on the Sisson Project by the Northcliff team. We welcome Todd's participation in the Sisson Project as a long term partner."
The transaction is subject to regulatory approvals and is scheduled to close in early October.
About Northcliff Resources Ltd.
Northcliff, associated with Hunter Dickinson Inc. (HDI), is a mineral resource company focused on advancing the Sisson Tungsten-Molybdenum Project located in New Brunswick, Canada, to production. The results of the Feasibility Study, completed in January 2013, confirm that the Sisson Project is technically and economically feasible and can now move on to the next stage of development. For further details on Northcliff and the Sisson Tungsten-Molybdenum Project please visit Northcliff's website: www.northcliffresources.com.
About Todd Minerals Ltd. and Todd Corporation
Todd is the subsidiary of Todd Corporation charged with the development of Todd Corporation's mineral and coal investments. Todd Corporation is family owned and is one of New Zealand's largest and most successful companies. The company has interests in oil and gas exploration and production, electricity generation, energy retailing, property development, healthcare, telecommunications and wine. Todd Minerals Ltd. is headquartered at The Todd Building, 95 Customhouse Quay, PO Box 3141, Wellington, New Zealand. Todd has agreed to purchase the Northcliff common shares for investment purposes and may or may not purchase or sell Northcliff securities in the future on the open market or in private transactions, depending on market conditions and other factors. The Northcliff securities were acquired pursuant to the minimum amount investment exemption under applicable securities laws. A copy of the early warning report to be filed by Todd in connection with the investment will be available on Northcliff's profile on SEDAR at www.sedar.com or contact Mike Munro at +64 4 917 8852.
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You can view the Next News Releases item: Wed Oct 16, 2013, Northcliff Closes Todd Corporation Financing for Sisson Tungsten-Molybdenum Project and Appoints new Director to the Board
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