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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