Red Metal Resources Announces Option of Perth Property for USD$1 Million
THUNDER BAY, ON and VALLENAR, CHILE, May 7, 2013 /PRNewswire/ – Red Metal
Resources Ltd. (OTCQB:RMES), a mineral exploration company with
copper-gold assets in Chile, is pleased to announce that its Chilean
subsidiary, Minera Polymet Limitada, (“Polymet”) has signed a
memorandum of understanding with Chilean based Geoactiva SPA
(Geoactiva) whereby Geoactiva intends to acquire the option to earn
100% interest in the Perth property. To earn 100%, Geoactiva will be
required to make payments totaling US$1,000,000, of which $37,500 was
paid on signing, and incur a total of US$3,500,000 in exploration
expenditures over a period of four years.
Polymet will retain a 1.5% net smelter royalty for all copper, gold and
cobalt exploited on the property derived from the minerals extracted as
a result of the exploitation of the property. Geoactiva may acquire
100% of the NSR once the option agreement is completed by paying in one
installment US$5.00 per inferred ounce of gold and US$0.005 per
inferred pound of copper in a resource estimate compliant with CIM
standards on Mineral Resources and Mineral Reserves and completed by an
independent third party agreed upon by Polymet and Geoactiva.
Geoactiva is a part of Mineria Activa, a private equity group focused on
mining in Chile. The Mineria Activa group manages projects from
exploration to production stage using their in-house team of geologists
and mining engineers.
Caitlin Jeffs, P.Geo., President & CEO of Red Metal stated, “This timely
agreement with Geoactiva meets our objectives of bringing the company
cash flow – The fact that Perth will be acquired by a mining group
affirms our belief in the value and production potential of other
projects that we have assembled in Chile.”
Caitlin Jeffs, P. Geo., President & CEO of Red Metal, the project’s
Qualified Person as defined in NI 43-101, has reviewed and approved the
contents of this news release.
About Red Metal Resources Ltd.
Red Metal Resources is a mineral exploration company focused on
aggressive growth through acquiring, exploring and developing
copper-gold assets in Chile. Our projects are located in the prolific
Candelaria iron oxide copper-gold (IOCG) belt of Chile’s coastal
Cordillera, host to Freeport-McMoRan’s Candelaria Mine and Anglo
American’s Mantoverde Mine. Red Metal is a fully reporting US public
company quoted on the OTCQB under the symbol RMES. For more
information, visit www.redmetalresources.com.
Except for the statements of historical fact, the information contained
herein is of a forward-looking nature. Such forward-looking information
involves known and unknown risks, uncertainties and other factors that
may cause the actual results, performance or achievement of the company
to be materially different from any future results, performance or
achievements expressed or implied by statements containing
forward-looking information. Accordingly, you should not place undue
reliance on statements containing forward looking information. The U.S.
Securities and Exchange Commission permits mining companies, in their
filings with the SEC, to disclose only those mineral deposits that a
company can economically and legally extract or produce. We may use
certain terms in our press releases, such as “measured,” “indicated,”
and “inferred” resources, which the SEC guidelines generally prohibit
companies from including in their filings with the SEC. Investors are
urged to consider closely the disclosure in our Form 10-K, which may be
obtained from us, or from the SEC website.
SOURCE Red Metal Resources Ltd.