Red Eagle Mining Acquires an Additional 35,910 Hectares at Santa Rosa
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 25, 2012) - Red Eagle Mining Corporation (TSX VENTURE:RD)(OTCQX:RDEMF) announces that it has entered into a Purchase Agreement with Bullet Holding Corp. ("Bullet"), a private company at arm's length to Red Eagle Mining, pursuant to which Red Eagle Mining has agreed to acquire certain mineral exploration rights totaling 35,910 hectares adjacent to Red Eagle Mining's Santa Rosa gold project in Colombia. In consideration for the property, Red Eagle Mining has agreed to issue 905,000 common shares to Bullet and grant Bullet a 1.5% net smelter returns royalty over the properties acquired. Closing of the acquisition is subject to the prior approval of the TSX Venture Exchange.
"This acquisition is an important step in accomplishing our objective of consolidating the Santa Rosa gold mining district. Red Eagle Mining now holds approximately 390 km2 surrounding the San Ramon gold system in one of the most significant areas of historical gold production in Colombia," comments Ian Slater, Chief Executive Officer. "We are also very pleased to partner with Grupo de Bullet, one of the most experienced and long standing mining groups in Colombia."
About Red Eagle Mining
Red Eagle Mining Corporation is a well-financed gold exploration and development company with an experienced mine development team. Red Eagle Mining is currently developing the 390 km2 Santa Rosa gold project located in Colombia. Santa Rosa is an intrusive hosted structurally-controlled quartz stockwork system within the prolific Cretaceous Antioquia Batholith. Gold mining within the Santa Rosa project pre-dates the 16th century when an estimated 30 million tonnes were mined. Santa Rosa is located 70km north of Medellin near the town of Santa Rosa de Osos in a region characterized by gently rolling hills and excellent infrastructure. Santa Rosa is also located 50 km west of AngloGold Ashanti's Gramalote gold deposit (2.5 million ounce M&I resource grading 0.8 g/t Au) and 60 km east of Continental Gold's Buritica gold deposit (1.6 million ounce M&I resource grading 13.6 g/t Au). Red Eagle Mining also holds an extensive package of exploration ground in Colombia, including the Pavo Real project in the Mid-Cauca gold belt.
For further information on Red Eagle Mining please refer to our website www.redeaglemining.com.
This news release includes forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although the Red Eagle Mining 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 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, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements. This news release does not constitute an offer to sell or a solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
FOR FURTHER INFORMATION PLEASE CONTACT:
Red Eagle Mining Corporation
Chief Executive Officer
+1 604 638 2545
+1 604 638 2546 (FAX)
+1 604 682 4600 or Toll Free +1 855 682 4600
Mobile: +1 778 389 7715