|July 03, 2012|
Rathdowney Options Mallow Property In Ireland To Antofagasta
|July 3 2012, Vancouver, B.C. Rathdowney Resources Ltd. ("Rathdowney" or the "Company") (TSX-V: 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.
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.
President & CEO