Redstar Gold Corp. ("Redstar" or the "Company") (TSX.V:RGC) is pleased to announce the sale of its North Bullfrog property in Nevada to International Tower Hill Mines Ltd. ("ITH"). Under the terms of the sale agreement ITH will pay Redstar $934,000 in cash and shares to earn 100% of Redstar's interest in the property. The payment includes $250,000 in cash and 200,000 ITH shares (at a deemed value of $3.42).
The sale of the North Bullfrog property marks a significant step in Redstar's commitment to exploration in Nevada, one of the largest gold mining districts in the world. Since acquiring AngloGold Ashanti's Nevada geological database in 2005 Redstar's goal has been to make its Nevada operations self funding. Since 2005 Redstar has acquired a total of nine projects and the sale of North Bullfrog more than covers all of Redstar's Nevada expenditures to date. This allows Redstar to continue developing high-quality projects and gives shareholders exposure to a maximum number of projects for minimal costs.
Scott Weekes, President of Redstar states: "This agreement gives Redstar funding needed to continue actively adding to its portfolio of high-quality projects in Nevada and gives the company working capital without having to raise money on the equity markets. Redstar has demonstrated the ability to continue generating quality projects using our geological database acquired from AngloGold Ashanti and we are actively seeking joint venture partners to continue advancing our various Nevada projects. We are also very excited about our Newman Todd project in Red Lake and looking at a number of different alternatives that would allow us to complete a large drilling program in 2009."
Closing of the acquisition is subject to the acceptance for filing thereof by the TSX Venture Exchange on behalf of each of Redstar and ITH, the approval thereof by the NYSE-Amex on behalf of ITH and the satisfaction of the usual conditions precedent, including the accuracy of representations and warranties, and the performance of covenants, as at closing. Closing of the acquisition is to occur 5 business days after all regulatory acceptances and approvals have been received.
About Redstar Gold Corp.
Redstar Gold Corp. is a Vancouver-based company focused on gold exploration in Nevada and Red Lake, Ontario. For more detailed information on Redstar's Nevada projects, as well as its gold projects in the Red Lake area, please visit the company's web site at www.redstargold.com.
On Behalf of the Board,
Redstar Gold Corp
Redstar Gold Corp.
B&D Capital Partners
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."