WSR Gold to acquire stake in Big Mac

WSR Gold Inc. and MacDonald Mines Exploration Ltd. have entered into a Letter of Intent pursuant to which WSR has agreed to acquire a 75% legal and beneficial interest in the Big Mac Property. The Big Mac Property includes 51 Claim Blocks, approximately 11,200 hectares, in the “Ring of Fire”, McFauld’s Lake, Ontario, near Noront’s prolific nickle copper discovery.

In order to acquire its interest in the property, WSR is required to:

1. issue to BMK an aggregate of 5,000,000 common shares on receiving TSX Venture Exchange and Board of Directors approval of the Option Agreement;

2. make a cash payments to BMK in the amount of $100,000; and

3. issue to BMK an aggregate of 1,000,000 share purchase warrants, each entitling the holder thereof to acquire one common share of WSR at an exercise price of $0.50 per share for a period of two years from closing.

BMK shall have a carried interest until WSR delivers a pre feasibility study to BMK on the Big Mac Property. After the delivery of a pre feasibility study, BMK will be required to pay a pro rata portion of costs related to the property to maintain its 25% interest.

Closing of the transaction remains subject to WSR’s satisfactory due diligence, the approval of the TSX Venture Exchange and WSR’s Board of Directors and execution of a definitive agreement of purchase and sale and joint venture agreement.