Redhawk Resources, Inc. ("Redhawk" or the "Company") is pleased to announce that it has entered into a binding letter agreement with Anglo American with respect to a joint venture on Redhawk's Copper Creek project (the "Project") in San Manuel, Arizona.
Through a joint venture company to be formed, Anglo American will earn a 60% interest in the Project, through funding expenditures of US $44 million over a five year period with a commitment to fund at least US$3 million in the first year. Anglo American may earn an additional 20% interest in the Project by funding a further US$20 million in expenditures on or before the seventh anniversary of the effective date of the joint venture. Redhawk will be the operator for the first three years of the joint venture, after which time Anglo American will be the operator.
R. Joe Sandberg, President and CEO of Redhawk stated: "We are extremely pleased to have Anglo American participate with Redhawk on the advancement of our Copper Creek project. Anglo American is a respected global mining company with ready access to experienced people, technology, and capital. Copper Creek currently has a significant mineral resource and the potential for expansion in numerous areas. Partnering with one of the world's largest mining companies will provide Redhawk with many advantages for the methodical exploration of the upside potential and eventual exploitation of the deposit. We are also very proud to be appointed as operator during the initial period of the joint venture as it is validation of the quality of the Redhawk team and the work conducted by Redhawk on this project."
The transaction is subject to customary terms and conditions, including the completion by Anglo American of satisfactory financial, legal and environmental due diligence of the Project, and the execution of a definitive joint venture agreement. Anglo American has confirmed that it has completed its technical due diligence of the Project to its satisfaction. Redhawk anticipates the outstanding conditions to be satisfied and the definitive joint venture agreement with Anglo American executed during August, 2014. It is expected that, following the execution of the definitive joint venture agreement, activities on the Project will proceed on an accelerated basis.
About Anglo American
Anglo American is one of the world's largest mining companies, is headquartered in the UK and listed on the London and Johannesburg stock exchanges. Our portfolio of mining businesses meets our customers' changing needs and spans bulk commodities - iron ore and manganese, metallurgical coal and thermal coal; base metals and minerals - copper, nickel, niobium and phosphates; and precious metals and minerals - in which we are a global leader in both platinum and diamonds. At Anglo American, we are committed to working together with our stakeholders - our investors, our partners and our employees - to create sustainable value that makes a real difference, while upholding the highest standards of safety and responsibility across all our businesses and geographies. The company's mining operations, pipeline of growth projects and exploration activities span southern Africa, South America, Australia, North America, Asia and Europe.
About Redhawk
Redhawk is a Canadian-based resource exploration and development company with primary focus on the accelerated development of its advanced stage Copper Creek copper-molybdenum project in San Manuel, Arizona. The 100% owned Copper Creek property consists of approximately twenty-nine square miles of contiguous patented and unpatented mining claims and state prospecting permits, located about 70 miles northeast of Tucson, Arizona and about 15 miles east of San Manuel. The property is in the prolific southwest US porphyry copper belt at the projected intersection of a major northwest belt of porphyry copper deposits or mines (Ray, Miami/Globe, Superior/Resolution, Johnson Camp) and a major east-northeast belt of porphyry deposits (San Manuel/Kalamazoo, Silver Bell, Lakeshore, Safford, Morenci). The property is within sight of the former BHP Kalamazoo/San Manuel copper smelter and mine and within 30 miles of an existing operating copper mill and smelter. The area is a mining friendly and politically secure location with excellent and readily accessible infrastructure including power, rail, water, roads and qualified consultants.
ON BEHALF OF THE BOARD
R. Joe Sandberg, President & CEO
Source: http://www.redhawkresources.com/