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Message: New World Announces a loan agreement with Northern Lion Gold Corp.
| January 21, 2009 |
| New World Announces Loan Agreement |
| VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 21, 2009) - New World Resource Corp. (the "Company") (TSX VENTURE:NW) announces that it has entered into a loan agreement (the "Agreement") with Northern Lion Gold Corp. ("Northern Lion"), pursuant to which Northern Lion will advance up to Cdn$500,000 to the Company. Under the terms of the Agreement, Northern Lion will advance Cdn$300,000 to the Company upon TSX Venture Exchange acceptance of the transaction. One additional draw of Cdn$200,000 will be available to the Company at its discretion. The loan, together with the interest accrued thereon, will be payable on or before September 30, 2009. The loan will bear interest at a rate of 10% per annum, accruing daily. The loan will be secured by a pledge (the "Pledge") of all of the shares of the Company's subsidiary, New World Resource Bolivia S.A., which holds the Lipena option agreement. If the Company is unable to pay back the loan, Northern Lion will have the opportunity to take over the Lipena option agreement with Empresa Minera Marte S.R.L and earn a 75% interest in a joint venture on the Lipena copper gold project. No other assets of the Company, including its interest in the Bonete joint venture agreement, the Pastos Grandes letter of intent, the La Negra option agreement and the Long Valley project, have been charged as collateral for the loan. Northern Lion is a reporting issuer listed on the TSX Venture Exchange. John Lando and Lyle Brown are directors of both the Company and Northern Lion and Mr. Lando is the President of both companies. The terms of the Agreement and Pledge were negotiated by the independent directors of the Company, and both Mr. Lando and Mr. Brown declared their interests in the transaction and abstained from voting on it. The loan will be used by the Company to advance the Lipena project, to keep its other exploration projects in Bolivia, Chile and the United States in good standing, and for general working capital. The Company anticipates that it will be able to obtain traditional debt or equity financing in the near future, which will enable it to repay the loan. About New World New World Resource Corp. is a Canadian based mining exploration company focused on building a strong, diversified project portfolio within the Americas. NEW WORLD RESOURCE CORP. John Lando, President |
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