Toronto, Ontario--(Newsfile Corp. - May 2, 2025) - New Break Resources Ltd. (CSE:NBRK) ("New Break" or the "Company") is pleased to announce that effective April 30, 2025, it has completed the sale of the Company's 100% interest in the mineral rights and exploration data associated with the 9,415 hectare Sundog gold project located in Kivalliq Region, Nunavut ("Sundog") held pursuant to an Inuit Owned Lands Mineral Exploration Agreement ("MEA") and 60 drums (12,300 litres) of Jet A fuel located in Arviat, Nunavut to Guardian Exploration Inc. (TSXV: GX) ("Guardian"), previously announced on December 9, 2024 and April 10, 2025.
In consideration for assignment of the MEA to Guardian and sale of the fuel and Sundog exploration data (collectively, the "Acquired Assets"), Guardian has made a cash payment to New Break of $75,000, issued to New Break, 5,000,000 common shares of Guardian (the "Consideration Shares") and has reimbursed New Break for the $18,830 the Company paid in December 2024 to Nunavut Tunngavik Incorporation ("NTI") in respect of the 2025 annual rent on the Sundog property. The Consideration Shares have a statutory hold period until August 31, 2025. Guardian has assumed 100% of the responsibility for the obligations under the MEA including the annual exploration expenditure requirements and annual rent payments due to NTI, until a construction decision is made.
New Break retains an option to purchase a 20% interest in the Sundog Project at any time for $1, carried through to a decision to mine (the "Option"). Upon exercise of the Option, New Break and Guardian would enter into an agreement on standard industry terms to be mutually agreed upon, governing the joint operation on a 20/80 basis, respectively. New Break would only become responsible for funding 20% of mine development costs once a construction decision has been made. New Break can sell its interest at any time, subject to Guardian having right of first refusal to buy New Break's 20% interest.
Michael Farrant, President of New Break commented, "The sale of the Sundog gold project to Guardian strengthens the Company's balance sheet through the receipt of $93,830 in cash and 5,000,000 common shares of Guardian valued at $425,000 at closing. New Break shareholders still retain significant leverage to Sundog through New Break's option to buy back 20% of the project for $1. In the meantime, it is expected that Guardian has the ability to more rapidly advance exploration efforts at Sundog, while New Break can focus the majority of our efforts on drilling the Company's Moray gold project in Ontario, where exploration can also be carried out year-round."
The sale of Sundog is an Arm's Length Transaction under the policies of the TSX Venture Exchange (the "Exchange"). Completion of the sale was subject to approval from the Exchange, NTI and the boards of New Break and Guardian as well as other conditions usual to transactions of this nature, all of which were obtained or fulfilled.
About New Break Resources Ltd.
New Break is a proudly Canadian mineral exploration company focused on its Moray gold project located 49 km south of Timmins, Ontario, in a well-established mining camp within proximity to existing infrastructure, 32 km northwest of the Young-Davidson gold mine, operated by Alamos Gold Inc. In addition, shareholders remain leveraged to exploration success in Nunavut, one of the most up and coming regions in Canada for gold exploration and production through New Break's 20% carried interest in the Sundog gold project. The Company is supported by a highly experienced team of mining professionals. Information on New Break is available under the Company's profile on SEDAR+ at www.sedarplus.ca and on the Company's website at www.newbreakresources.ca. New Break trades on the Canadian Securities Exchange (www.thecse.com) under the symbol (CSE: NBRK).
No stock exchange, regulation securities provider, securities commission or other regulatory authority has approved or disapproved the information contained in this news release.
CAUTIONARY NOTE REGARDING FORWARD LOOKING INFORMATION
Except for statements of historic fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements including, but not limited to receipt of regulatory and stock exchange approvals, grants of equity-based compensation, renouncement of flow-through exploration expenses, property agreements, timing and content of upcoming work programs, geological interpretations, receipt of property titles, an inability to predict and counteract the effects global events on the business of the Company, including but not limited to the effects on the price of commodities, capital market conditions, restriction on labour and international travel and supply chains etc. Forward-looking information addresses future events and conditions and therefore involves inherent risks and uncertainties, including factors beyond the Company's control. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to update publicly or otherwise any forward-looking information, except as may be required by law. Additional information identifying risks and uncertainties that could affect financial results is contained in the Company's financial statements and management's discussion and analysis (the "Filings"), such Filings available upon request.
