By Marketwire,
May 6, 2009 at 2:51 PM
ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwire - May 6, 2009) - New Island Resources Inc. (New Island)(TSX VENTURE:NIS) of St. John's, NL announces that it has exercised its right of first offer from Crew Gold Corporation (Crew) to acquire the Nugget Pond mill facilities situated on the Baie Verte Peninsula in Newfoundland. The offering price is $3,500,000 and the assumption of reclamation bonding of $1,500,000. Closing is to take place within 90 days. At closing, subject to negotiation between New Island and Crew of satisfactory terms and conditions, Crew will enter into an agreement (the Milling Agreement) with New Island that will provide that during the period from closing to June 30, 2010, Crew will have use of the facility, including custom milling ore for third parties.