VANCOUVER, Aug. 12 /CNW/ - Red Dragon Resources Corp. (the "Company")
would like to update the market in view of the recent increase in the volume
and price of the Company's shares. There have been no material transactions to
report and the Company continues to use its financial and technical strength
to evaluate a number of projects for possible acquisition.
The Company has a healthy balance sheet of $9.35 million in cash and cash
equivalents and $8 million in investments as of July 31, 2009. This is
equivalent to $0.25 per share based on the share capital of the Company. These
are sufficient funds for the Company to continue their corporate development
activity and to identify attractive opportunities for potential investment.
The Company believes it has the opportunity, particularly in the current
climate of tight credit markets and low valuations for junior resource
companies, to identify and invest in new projects with potential for
significant appreciation in value from good project fundamentals as well as
the anticipated increase in commodity prices as physical demand for materials
increases as the world recovers from the recent recession.
In addition to project generation, the Company and its joint venture
partner, AREVA Resources Canada Inc., continue to advance the Rea Uranium
Project in northeast Alberta on the western edge of the Athabasca Basin. The
project covers 446,330 acres of highly prospective ground and surrounds
AREVA's Maybelle River uranium deposit. The Athabasca Basin is host to some of
the worlds largest and richest uranium mines and contributes about 32% of the
world's uranium supply.
The TSX Venture Exchange neither approved nor disapproved the contents of
this news release.
For further information:
For further information: Red Dragon Resources Corp., Alvin Jackson,
Chairman and Chief Executive Officer, Tel: (604) 602-8188; Harbour Financial
Inc., Brian N. Barbour, Tel: (403) 813-5832