VANCOUVER, July 9, 2012 /CNW/ - Rathdowney Resources Ltd. ("Rathdowney"
or the "Company") (TSXV: RTH) announces that it will make a $4.4
million investment in Heatherdale Resources Ltd. ("Heatherdale") (TSXV:
HTR) by subscribing for 22,000,000 common shares of Heatherdale, in a
private placement, at a price of C$0.20 per share. The placement is
subject to TSX Venture Exchange approval and, when completed, will
result in the Company holding approximately 18.4% of Heatherdale.
Through this investment, Rathdowney will gain a significant interest in
Heatherdale's 100%-owned Niblack Copper-Gold-Zinc-Silver project
located in southeastern Alaska, USA. Niblack is a project with
excellent operating characteristics and potential for development over
the next two years.
Rathdowney's Operational Focus Remains on Project Olza
Rathdowney's main operational focus continues to be its flagship Olza
Zinc Project in the prolific Upper Silesian mineral district of
Poland. Project Olza hosts extensive Mississippi Valley Type Zinc-Lead
deposits as indicated by widespread drilling and historical resource
estimates conducted by the Polish State.
An extensive drilling program was undertaken by Rathdowney over the past
year to confirm this historical information. The program has been very
successful. An estimate of the Zinc resource will be delivered in the
next six to eight weeks. This is the first step in progressing Project
Olza toward development over the medium term.
"Rathdowney is fortunate in having a very strong treasury in a very
challenging market. The Company completed a large financing when it
went public in 2011, and we have also been able to advance drilling
programs at Olza over the past year at a lower cost than anticipated,"
said President and CEO John Barry. "We have also adjusted our broader
corporate strategy to take advantage of opportunities that arise under
current market conditions. Hence, we see this investment as a
compelling opportunity for exposure to a quality project like Niblack,
which is closer to production than Olza, with metal diversification but
still with a common Zinc theme. There is real value available in these
depressed markets and we are in the happy position to be able to take
advantage while still having have sufficient funds to continue to
advance our larger-scale Olza Project."
Corporate Strategy to Capitalize on Market Conditions and Focus on Late
In response to global economic conditions, the Company is focused on
rebalancing the risk profile of its project portfolio while maintaining
significant exposure to successful discoveries. To this end,
management has chosen to bolster its near term development pipeline by
gaining an interest in the later stage projects and to farm-out its
early stage Zinc projects in Ireland. Rathdowney's exploration team in
Ireland has done an excellent job with these early stage projects,
which are attracting the interest of major international mining
companies as shown by the announcement on the Company's Mallow Project
made earlier this week (see news release dated July 3 2012).
Rathdowney believes that its investment in Heatherdale provides
shareholders with a low cost opportunity to participate in a project
with excellent potential. Drilling by Heatherdale over the past two
plus years has significantly expanded Niblack's mineral resources, with
strong indications that drilling planned for this year will underpin
prefeasibility work to advance the project rapidly. The project also
enjoys strong local government and community support which, combined
with existing underground infrastructure, would facilitate production
in the near term.
Rathdowney engaged independent technical advisors to assess the Niblack
Project and the proposed drilling program for 2012. These advisors,
along with Rathdowney's in-house technical team, believe that the
drilling program is wholly warranted. Rathdowney is making the
investment at a premium to the market in order to secure a strategic
block of shares, and to take a strong role in future planning for the
On completion of the financing, in addition to owning approximately
18.4% of Heatherdale's shares, Rathdowney will also have the option to
appoint up to two members to Heatherdale's Board of Directors and
provide input to Heatherdale's Technical Management Group.
Rathdowney and Heatherdale are both Hunter Dickinson-associated
companies, and have some directors in common. There are synergies as
both companies draw from the same pool of technical expertise in
Vancouver which has a track record of excellence in delivery. Such
commonality in directors, management and technical expertise has
provided Rathdowney with great comfort in its due diligence and
confidence in the effectiveness of Heatherdale's management.
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 Poland and Ireland. The Company's Project Olza in
Poland lies in the prolific Upper Silesian Mineral District where
Zinc-Lead production has been underway since the 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.
SOURCE Rathdowney Resources Ltd.
For further information:
For further details on Rathdowney and its projects, please visit www.rathdowneyresources.com or contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114.