October 1, 2012, Vancouver, BC - Rathdowney Resources Ltd. (“Rathdowney” or the “Company”) (TSX-V: RTH) announces that it has optioned thirty-one (31) Prospecting Licenses that comprise the Westmeath South, Westmeath North, Galway, Laois, Longford and Meath properties (the “Prospecting Licenses”) located in the Irish Midlands zinc-lead district held by Exploration and Discovery Limited (“EDL”) to Teck Ireland Ltd. (“Teck Ireland”), a subsidiary of Teck Resources Limited (“Teck”). EDL is a wholly-owned subsidiary of Rathdowney’s Irish subsidiary Mayfly Resources Limited.
Teck Ireland has the option (the “Option”) to acquire a 100% interest in the Prospecting Licenses by incurring Expenditures on the Prospecting Licenses totalling €3,500,000 (C$4.39 million) on or before December 31, 2016. Upon exercise of the Option by Teck Ireland, EDL will retain a 2.0% Net Smelter Returns Royalty on minerals extracted from the areas covered by the Prospecting Licences. The acquisition is subject to Ministerial approval in Ireland.
Rathdowney’s CEO and President John Barry remarked, ”Rathdowney’s work on these prospecting licenses in Ireland has provided a solid platform for Teck Ireland to advance exploration and include in its regional geophysical surveys, targeting major concealed zinc-lead mineralizing systems. Rathdowney retains significant participation in any major economic discovery, while being able to focus its current resources on the Project Olza zinc-lead project in Poland.”
Upon Ministerial approval of the Option, Teck will also make a C$350,000 private placement investment in Rathdowney by subscribing for 700,000 common shares at a price of C$0.50 per share. The placement is subject to TSX Venture Exchange approval. The common shares will be subject to applicable resale restrictions, including a four month hold period under Canadian securities rules from the date of completion of the placement…
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