Redhill Acquires an Additional Prospecting License Within Tembo's Claim Block
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/25/12 -- Redhill Resources Corp. (TSX VENTURE: RHR) ('Redhill' or the 'Company') is pleased to announce that it has entered into an Agreement (the 'Agreement') with Thamani Mines Ltd. allowing Redhill to acquire a 100% interest in a prospecting license adjoining the Nyakagwe property located in Tanzania, East Africa. This additional land adds 100 hectares to the project, bringing the total number of hectares to approximately 500.
The Nyakagwe property is strategically located on the Bulyanhulu regional trend within six kilometres (km) of Barrick Gold's 12 million-ounce Bulyanhulu gold mine. The property consists of forty-six Primary Mining licenses (PMLs) and one prospecting license (PL) that is contiguous to the Company's present land holdings. The Nyakagwe PMLs and PLs are surrounded entirely by prospecting licenses and applications for prospecting licenses owned and presently being explored by Tembo Gold Corp.
The Company is fully funded and is planning an extensive exploration program on for 2012. The program will include mapping, sampling, trenching and induced polarization (IP), with the intention of defining drill targets for the upcoming exploration season.
In order to acquire the 100% interest in the additional prospecting license, the Company has agreed to make the following cash payments, share issuances and exploration expenditures in the table below:
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Exploration
Cash Payments Expenditures
Completion Date Cdn$ Share Issuance Cdn$
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On Signing this $25,000 100,000 within 5 business --
Agreement days from the date the TSX
Venture Exchange approves
the terms of this Agreement
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First Anniversary date $50,000 200,000 $50,000
of this Agreement
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Second Anniversary $75,000 300,000 $100,000
date of this
Agreement
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Third Anniversary of $100,000 400,000 $150,000
this Agreement
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TOTAL $250,000 1,000,000 $300,000
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A finder's fee of the maximum allowed under the policies of the TSX Venture Exchange will be paid in cash in connection with the acquisition.
This news release has been approved by Brent Butler, a Qualified Person as that term is defined in NI 43-101.
REDHILL RESOURCES CORP.
Clive Massey, 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 or Toll Free: 1-877-662-8184
604-602-1606 (FAX)
investor@redhill-resources.com
www.redhill-resources.com