Jun 4 2014
Red Eagle Mining Corporation is pleased to announce that it has entered into a Purchase Agreement with AngloGold Ashanti Colombia S.A., pursuant to which Red Eagle Mining has agreed to acquire 100% of certain contiguous mineral exploration rights totaling 1,673 hectares within Red Eagle Mining's Santa Rosa Gold Project in Antioquia, Colombia.
In consideration for the property, Red Eagle Mining has agreed to pay US$375,000 to AGAC over two years and grant AGAC a 2% net smelter return royalty on the properties acquired. No other third party royalties exist on the property nor are they captured by existing royalty arrangements.
This acquisition includes an approximately one kilometre extension directly on strike to the east of the two kilometre long San Ramon Gold Deposit, which plunges to the east on to the adjacent AGAC concessions. Red Eagle Mining has completed and previously announced ten core drill holes which intercepted the deposit within 100m of the AGAC concessions. The current reported resource is cut off at the existing concession boundary.
"This acquisition is a crucial step in accomplishing our objective of consolidating the Santa Rosa gold mining district following our acquisition of the core project in 2011, the surrounding area from Grupo de Bullet in 2012 and our staking programme in 2013," comments Ian Slater, Chief Executive Officer. "The acquisition is also important to developing the San Ramon Gold Deposit as it has the potential to extend the existing resource further to the east."
The technical information contained in this news release has been reviewed and approved by Red Eagle Mining's Vice President of Exploration, Jeff Toohey, P.Eng., who is a Qualified Person as defined under NI 43-101.
Source: Red Eagle Mining Corporation