Redhill Options Claims Contiguous to Colorado Resources Discovery
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/07/13 -- Redhill Resources Corp., (TSX VENTURE: RHR), ("Redhill" or the "Company") is pleased to announce it has entered into an agreement dated May 2, 2013 with Teuton Resources Corp. (TSX VENTURE: TUO), ("Teuton") to option Teuton's Yellow Chris South claims ("the Property"). The Property is 12.86 square kilometres in size and located east of the town of Iskut in the Red Chris region of northwestern British Columbia.
The Property adjoins Colorado Resources Ltd.'s North Rok property to the north and east, and is situated within a couple of kilometers of Colorado's recent discovery hole reported as running 242 metres averaging 0.63% copper and 0.85 g/t gold. Refer to Figure 1, available at the following link: http://media3.marketwire.com/docs/rhr0507.pdf.
Previous work on the Yellow Chris South claims, including geophysical and geochemical sampling, has identified a geophysical setting similar to that at the North Rok property.
Redhill is planning a program of soil sampling, geological mapping and geophysical surveying over the Yellow Chris South claims to start immediately. Diamond drilling is anticipated to follow on any early success.
Terms of the Agreement
The terms of the Agreement call for the Company and Teuton to enter into a formal option agreement ("the Option Agreement") under which Redhill can earn up to a 60% interest in the Property by completing the following:
To earn a 50% interest over a four year option term, Redhill is required to pay Teuton $75,000 per year to a total of $300,000, issue 350,000 common shares per year, for a total of 1,400,000 common shares and incur $4,500,000 in aggregate work commitments on the Property.
Upon completion of the 50% earn-in, Redhill can earn an additional 10% interest in the Property, bringing the total interest to 60%, by paying Teuton $200,000, issuing 200,000 common shares and incurring a further $2 million in work on the Property.
The Option Agreement is subject to regulatory approval. This news release has been reviewed by Brent Butler, Director, and a Qualified Person as that term is defined in NI 43-101.
About Redhill Resources Corp.
Redhill Resources Corp. is a TSX-V listed company with approximately $7.5 million in working capital and marketable securities and numerous mineral exploration assets in British Columbia, Tanzania, and Utah.
REDHILL RESOURCES CORP.
Andrew Bowering, President & CEO
"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