Canadian miner, Lion Energy is to assign its interest in the El Sol iron ore property in northern Ontario to Northern Iron Corporation. In return Lion will receive a total of 8.5 million shares in NIC.
Lion has also agreed to accept an aggregate of 500,000 common shares in NIC as compensation for the assignment, and as consideration for agreeing to waive the requirement for either the Company or NIC to incur remaining exploration expenditures on the El Sol property up to $1,500,000.
The Shares are to be converted, on a ratio of not less than 1 to 1, into shares of a company listed on the TSX Venture Exchange. Lion will then distribute the shares to shareholders of Lion Energy.
Both parties have agreed a time frame of up to 31 January 2011 for the shares to be converted.
El Sol is located approximately 75 km northeast of Ear Falls, Ontario in the Red Lake Mining District.
Lion is also involved in oil and gas exploration projects in Kenya, Ethiopia and Somalia. It also holds several strategic investments in Potash, Sulphur Fertilizer and Uranium. The company recently formalised a deal to sell its potash assets to Encanto Potash Corp and in return Lion now owns 14.8% of Encanto.
Des Nogalski
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