Rathdowney options out Irish properties
VANCOUVER, Oct. 1, 2012 /CNW/ - Rathdowney Resources Ltd. ("Rathdowney" or the "Company") (TSXV: 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.
Rathdowney Resources Ltd. is a mineral exploration company focused on finding and developing the next generation of zinc-lead-silver deposits in the ore fields of Europe. The Company's Project Olza is located in the prolific Upper Silesian Mineral District is a Mississippi Valley Type (MVT) zinc-lead prospect situated in Poland's prolific Upper Silesian mining district which has been a centre of exploration and mining activity since 12th century. Rathdowney is associated with Hunter Dickinson Inc. ("HDI") a diversified, global mine development company with a 25-year history of mineral development success. From its head office in Vancouver, Canada, HDI applies its unique strengths and capabilities to acquire, develop, operate and monetize mineral properties that provide consistently superior returns to shareholders.
President & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address exploration drilling, exploitation activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continuity of mineralization, potential environmental issues or liabilities associated with exploration, development and mining activities, uncertainties related to the ability to obtain necessary permits, licenses and title and delays due to third party opposition, changes in government policies regarding mining and natural resource exploration and exploitation, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, investors should review the Company's continuous disclosure filings that are available at www.sedar.com.
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