TORONTO, ONTARIO -- (Marketwired) -- 06/10/13 -- Red Pine Exploration Inc. (TSX VENTURE: RPX) has entered into two Mineral Property Acquisition Agreements to sell the Saracourt and Mortimer gold target properties. These property sales are a result of Red Pine's continued efforts to divest of certain properties in order to raise capital to fund exploration programs for its more advanced properties. The company believes both these properties have very good potential for gold discovery but will require robust exploration programs for discovery.
The terms of the sales are as follows:
-- Saracourt Property - Red Pine has received $25,000 and is due $150,000. Red Pine also receives the fair value of the equivalent of $300,000 common shares of Joshua Gold Resources Inc ("JGR"). If on September 15, 2013, JGR is a public company and their shares are worth less than $300,000, Red Pine will receive additional shares to bring the value to $300,000. If JGR is not public on September 15, 2013, Red Pine will receive $300,000 in exchange for JGR's shares. If JGR is not on an exchange and elects not to pay $300,000, Red Pine receives back title to the property claims. Red Pine retains a 3% net smelter return ("NSR").-- Mortimer Property - Red Pine has received $75,000 and is due $50,000. Red Pine also receives the fair value of the equivalent of $100,000 common shares of JGR. If on July 15, 2013, JGR is a public and their shares are worth less than $100,000, Red Pine will receive additional shares to bring the value to $100,000. If JGR is not a public company on July 15, 2013, Red Pine will receive $100,000 in exchange for JGR's shares. If JGR is not on an exchange and elects not to pay $100,000, Red Pine receives back the title of the property claims. The company retains a 3% NSR.
About Red Pine's Other Gold Properties
Fern Elizabeth Property, Atikokan, ON, Thunder Bay Mining District
Red Pine has a 75% interest in the Fern Elizabeth property, which is located 9 kilometres northwest of the town of Atikokan, Ontario. The area has a rich mining and exploration heritage and was a major iron mining centre in the mid-1970's. More recently Osisko has identified an inferred resource of 6.70 million ounces of gold approximately 20km to the North East (Hammond Reef). The Fern Elizabeth property is approximately 11 square kilometres and contains 25 claims and leases. The property has excellent infrastructure with both all weather road and boat access.
Soil sampling, geological mapping, prospecting, ground geophysical surveying and 8 diamond drill holes (1,490 m) were carried out to explore the Fern Elizabeth Property. Interesting intervals of gold mineralization was intersected in the vicinity of the historic No. 2 Shaft. Three of the intersections ranged from 3.0 to 12.2 grams per tonne gold.
Costello Property - Timmins, Ontario
The Costello property is located along the Bristol fault, a splay of the Destor Porcupine Deformation Corridor immediately to the east of the Timmins Mine ("TM"). At the TM, gold is hosted in mafic and ultramafic volcanic rock units and in sedimentary rock units of the Porcupine Group. The TM is located at the contact of the volcanic rocks and the sedimentary rocks.