14:33:28 EDT Tue 22 Apr 2025
Enter Symbol
or Name
USA
CA



New Break Resources Ltd
Symbol NBRK
Shares Issued 57,428,600
Close 2024-12-09 C$ 0.08
Market Cap C$ 4,594,288
Recent Sedar Documents

New Break signs LOI to sell Sundog project

2024-12-09 16:29 ET - News Release

Mr. Michael Farrant reports

NEW BREAK SIGNS LOI TO SELL THE SUNDOG GOLD PROJECT IN KIVALLIQ REGION, NUNAVUT

New Break Resources Ltd. has entered into a non-binding letter of intent (the LOI) with Guardian Exploration Inc. for the sale New Break's 100-per-cent interest in the mineral rights and exploration data associated with the 9,415-hectare Sundog gold project located in Kivalliq region, Nunavut, held pursuant to an Inuit-owned lands mineral exploration agreement (MEA). In addition, New Break has agreed to assign ownership of 205 drums of JetA fuel located in Arviat, Nunavut, to Guardian. In consideration for assignment of the MEA to Guardian and sale of the fuel and Sundog exploration data (collectively, the acquired assets), upon closing Guardian will make a cash payment to New Break of $75,000 and issue to New Break five million common shares of Guardian. Guardian will assume responsibility for the obligations under the MEA including the annual exploration expenditure requirements and annual rent payments due to Nunavut Tunngavik Inc. (NTI), including the current year rent payment of $18,830 due to NTI by Jan. 1, 2025. New Break will retain a 20-per-cent undivided interest in the Sundog project, carried through to production.

Michael Farrant, president and chief executive officer of New Break, commented: "This transaction is of significant benefit to both New Break and Guardian. Guardian is adding an excellent mineral property to its portfolio, while New Break will retain significant upside to the Sundog gold project through its 20-per-cent interest, carried all the way to production. The sale of Sundog will allow New Break to focus the company's exploration efforts on its flagship Moray gold project southeast of Timmins, Ontario, hosted in a similar geological setting to the nearby Young-Davidson gold mine operated by Alamos Gold Inc. The cash and share consideration being paid by Guardian will strengthen the company's financial position and we are confident that future exploration at Sundog will benefit significantly from the expertise and ability of Guardian's CEO and majority shareholder, Graydon Kowal, and his affiliated businesses."

The purchase and sale of the acquired assets is an arm's-length transaction under the policies of the Canadian Securities Exchange and the TSX Venture Exchange. Completion of the transaction is subject to approval from the exchanges, NTI and the boards of Guardian and New Break. The transaction is expected to close no later than Feb. 28, 2025, and is subject to other conditions usual to transactions of this nature.

About the Sundog gold project

Sundog is located approximately 235 kilometres west of Arviat, Nunavut, 640 km north of Thompson, Man., and lies 16 km to the northeast of the Cullaton Lake airstrip on parcel AR-35 of Inuit-owned land and covers approximately 9,415 hectares (the exploration area). The surface rights are managed by the Kivalliq Inuit Association (KIVIA) and administration of mineral rights is managed by NTI. The exploration area represents an underexplored part of the Henik Group, central Ennadai-Rankin Archean greenstone belt, the second-largest greenstone belt in Canada, second only to the Abitibi greenstone belt in Ontario and Quebec. The Sundog property is characterized by high-grade surface gold exposures. There are two banded iron formations on the property, with the potential for Musselwhite-Meadowbank-Meliadine type mineralization.

About New Break Resources Ltd.

New Break is a Canadian mineral exploration company focused on its Moray gold project in Northern Ontario, located in a well-established mining camp within proximity to existing infrastructure. In addition, the company provides its shareholders with significant exposure to the vast potential for exploration success in Nunavut, one of the most up-and-coming regions in Canada for gold exploration and production through its interests in the Sundog and Esker gold projects. New Break is supported by a highly experienced team of mining professionals.

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