VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 16, 2012) - Redhill Resources Corp. (TSX VENTURE:RHR) ("Redhill" or the "Company") has entered into a mineral property option agreement (the "Option Agreement") dated October 12, 2012 with Jared Henrickson (the "Optionor") whereby it is granted the option (the "Option") to acquire up to a 100% interest (subject to a 1.5% NSR granted to the Optionor) in the Aspen Claims (the "Property") located approximately 100 kilometers south-southwest of Vanderhoof, British Columbia in the Nechako Plateau region. The Property consists of 9 claims encompassing a total of 4,030 hectares.
The Aspen Claims adjoin the Company's recently optioned Chutanli Property and are situated 15 kilometres from New Gold's world class Blackwater gold deposit.
Terms of the Option Agreement:
In order to exercise the Option as to a 100% interest in the Property the Company shall:
(a) make the following cash payments (collectively, the "Option Cash Payments") to the Optionor:
- upon the execution of the Option Agreement (the "Payment Date"), a payment of $30,000;
- on or before the first anniversary of the Payment Date, a payment of $30,000;
- on or before the second anniversary of the Payment Date, the payment of $40,000;
- on or before the third anniversary of the Payment Date, the payment of $50,000;
- on or before the fourth anniversary of the Payment Date, the payment of $100,000; and
- on or before the fifth anniversary of the Payment Date, the payment of $300,000;
(b) incur the following Expenditures:
- completion of $50,000 on or before the first anniversary of the Payment Date;
- completion of another $100,000 in Expenditures, for a total of at least $150,000, on or before the second anniversary of the Payment Date; and
- completion of another $100,000 in Expenditures, for a total of at least $250,000 on or before the third anniversary of the Payment Date.
The Company may, at any time, exercise the Option early by paying the remaining Option Cash Payments to the Optionor and signing a declaration that it will make the remaining Expenditures.
The Company may, at any time, reduce the NSR to 1.0% by paying the sum of $1,000,000 to the Optionor.
Change in Management:
The Company is pleased to announce that Mr. Andrew Bowering has been appointed President and CEO of Redhill Resources Corp. Mr. Bowering is one of the founding directors of the Company. Mr. Bowering is a self-employed management consultant to public companies and has provided services in a variety of management and financial oversight roles. He has held senior executive positions and directorships in numerous public companies involved in mineral exploration in Canada, the United States, Mexico and China and other jurisdictions. He has an in-depth knowledge of securities markets, regulatory affairs and investor/public relations. Mr. Bowering has led several large acquisition programs in Northwest British Columbia, Alberta and Central Mexico.
Mr. Clive Massey has resigned as President and CEO to pursue other opportunities. Mr. Massey will remain as a director of Redhill Resources Corp.
REDHILL RESOURCES CORP.
Graham Harris, Chairman
"This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements."
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