VANCOUVER, July 3, 2012 /CNW/ - Rathdowney Resources Ltd. ("Rathdowney"
or the "Company") (TSXV: RTH) announces that it has optioned the Mallow
Zinc-Lead Project to Antofagasta Minerals S.A., a wholly owned
subsidiary of Antofagasta plc ("Antofagasta"). The 337-square
kilometer Mallow property is located south of the Pallas Green mineral
district in Ireland.
Antofagasta can earn up to a 75% interest in the Mallow Project by
spending $250,000 in the first 12 months and then exercising two
options. Under the First Option, Antofagasta can earn a 51% interest
by incurring US$3 million in expenditures on the property within three
years. Antofagasta can exercise the Second Option and increase its
interest in the Mallow Project to 75% by making a further US$3 million
in expenditures over the subsequent three years. On exercise of the
First Option, the companies would form a joint venture, and once
Antofagasta either earns a 75% interest or elects not to exercise the
Second Option, the companies will contribute to ongoing exploration of
the project in proportion to their held interests, or dilute. If
either party's interest dilutes to less than 10%, then its interest
would convert to a 1.5% Net Smelter Return royalty.
President and CEO John Barry said "We are pleased to have completed this
agreement with Antofagasta, which will provide funding for ongoing
exploration at Mallow. It also enables to the Company to focus its
efforts on further advancing its Olza Zinc-Lead Project in Poland."
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. The Company's other property-holdings include Galway, Laois
and Westmeath South, which were identified as its primary areas of
focus in Ireland following drilling in 2011.
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.
SOURCE Rathdowney Resources Ltd.
For further information:
For further details on the Company 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.