VANCOUVER – Redhill Resources Corp. (TSXV:RHR) is acquiring an 85 per cent interest in the Nyakagw gold project in Tanzania for US$ 613,400.
Under its agreement with Thamani Mines, Redhill can can acquire the remaining 15 per cent under a formula in which it would pay five per cent of the spot price of gold at the time of purchase, multiplied by the number of minable ounces it contains based on a feasibility study.
The Nyakagwe project is located on the Bulyanhulu regional trend within six kilometres of Barrick Gold’s (TSX:ABX) 12-million-ounce Bulyanhulu gold mine.
It consists of 46 primary mining licences in in three contiguous groups encompassing an area of approximately 400 hectares.
Redhill said it plans an extensive exploration program in 2012, saying in a release that it is well funded for the project with more than $ 12 million in cash and marketable securities.
Meanwhile, the Vancouver-based company, formerly ATW Gold Corp., also announced the appointment of Clive Massey, an experienced executive with over 20 years in the mining and finance sectors, as president and CEO.
Local news from metronews.ca/vancouver
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