July 3 2012, Vancouver, B.C. Rathdowney Resources Ltd.
(“Rathdowney” or the “Company”) (TSX-V: RTH) announces that it has optioned the
Mallow Zinc-Lead Project to Antofagasta Minerals S.A., a wholly owned subsidiary
of Antofagasta plc (“Antofagasta”). The 337-square kilometer Mallow property is
located south of the Pallas Green mineral district in Ireland.
Antofagasta can earn up to a 75% interest in the Mallow Project by
spending $250,000 in the first 12 months and then exercising two options. Under
the First Option, Antofagasta can earn a 51% interest by incurring US$3 million
in expenditures on the property within three years. Antofagasta can exercise
the Second Option and increase its interest in the Mallow Project to 75% by
making a further US$3 million in expenditures over the subsequent three years.
On exercise of the First Option, the companies would form a joint venture, and
once Antofagasta either earns a 75% interest or elects not to exercise the
Second Option, the companies will contribute to ongoing exploration of the
project in proportion to their held interests, or dilute. If either party’s
interest dilutes to less than 10%, then its interest would convert to a 1.5% Net
Smelter Return royalty.
President and CEO John Barry said “We are pleased to have completed this
agreement with Antofagasta, which will provide funding for ongoing exploration
at Mallow. It also enables to the Company to focus its efforts on further
advancing its Olza Zinc-Lead Project in Poland.”…
No comments:
Post a Comment