Redhill Options Tanzanian Properties To GeoNovus
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/25/12 -- Redhill Resources Corp. (TSX VENTURE: RHR) ("Redhill" or the "Company") is pleased to announce it has signed an Option Agreement ("the Option Agreement") with GeoNovus Minerals Corp. (TSX VENTURE: GNM) ("GeoNovus") allowing GeoNovus to acquire all of Redhill's interest in the Nyakagwe Properties (the "Nyakagwe Properties") in Tanzania, which are strategically located on the Bulyanhulu regional trend within six kilometres of African Barrick Gold's 10.6 million ounce Bulyanhulu gold mine.
The Nyakagwe Properties consist of forty-six primary mining licenses (PMLs), and one prospecting license (PL) encompassing a combined area of approximately 500 hectares surrounded entirely by prospecting licenses and applications for prospecting licenses owned and presently being explored by Tembo Gold Corp. ("Tembo").
Redhill completed the acquisition of its initial 85% interest in the 45 PMLs, 100% in another PML (PML2) and 100% interest in the PL in June 2012 (see Redhill news release dated June 14, 2012) and has the right to acquire the remaining 15% interest in the PMLs by paying a sum equal to 5% of the spot price of gold at the date of purchase, multiplied by the number of mineable ounces of gold that the 15% interest represents based on a feasibility study.
To acquire Redhill's interest, including the right to acquire the remaining 15% interest in the PMLs, in the Nyakagwe Properties, GeoNovus has agreed to pay to Redhill the sum of $1,200,000 in installments over the next 18 months and issue 1,000,000 shares of GeoNovus to Redhill.
GeoNovus has a period of 60 days from the date hereof in which to carry out its due diligence. In addition to GeoNovus being satisfied with the results of its due diligence, the disposition is subject to Redhill and GeoNovus entering into a definitive agreement and acceptance for filing by the TSX Venture Exchange on or before November 30, 2012.
REDHILL RESOURCES CORP.
Graham Harris, Chairman
"This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements."
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Contacts:
Redhill Resources Corp.
Investor Relations
(604) 662-8184
investor@redhill-resources.com
www.redhill-resources.com
