Red Pine Exploration Inc.
TSX VENTURE : RPX

Red Pine Exploration Inc.

March 16, 2010 16:22 ET

Red Pine Exploration Increases Land Position With Gold Properties in Swayze Greenstone Belt Near Timmins

TORONTO, ONTARIO--(Marketwire - March 16, 2010) - Red Pine Exploration Inc. ("Red Pine" or the "Company") (TSX VENTURE:RPX) announces that it has executed several agreements to acquire an interest in a series of high-potential gold properties located in the Dore, Swayze, Coppell, Newton, and Dale Townships of the Porcupine Mining Division, southwest of Timmins, Ontario in the south-central Swayze Greenstone Belt. 

Increased Stake in Mortimer Claims

Red Pine originally entered into a Purchase and Sale agreement with Charlie Mortimer to acquire 59% of the Property that is located in the Dore Township consisting of 12 claim blocks, and 100% of the Property that is located in the Dore/Rollo/Swayze Township area, consisting of 7 claim blocks, as detailed in the Company's October 15, 2009 press release. After acquiring the 59% interest in the Mortimer claims, Red Pine immediately initiated discussions with two other parties who held a 30% and 11% interest respectively in the 12 Dore Township claim blocks.

The company is pleased to announce that it has executed a Purchase and Sale agreement with the Lovold party to acquire their 30% interest in the above property bringing Red Pine's holdings of the 12 Mortimer claim blocks to an aggregate interest of 89%.

Lovold Purchase and Sale Agreement

In order to acquire 100% of the Lovold Party's 30% interest in the Property that is located in the Dore Township area, consisting of 12 claim blocks, Red Pine is required to:

  (i)   pay the Seller the sum of $20,000 cash; and
     
  (ii)   issue to the Seller one-hundred and twenty-five thousand (125,000) common shares of Red Pine which will be subject to resale restrictions imposed by applicable securities laws, including a four month hold period on such shares.
     
  (iii)   grant the Seller a 0.6% Net Smelter Royalty ("NSR"). Red Pine has the exclusive right, at any time, to buy 50% (or 0.3%) of this NSR for the sum of three-hundred thousand dollars ($300,000).

Option to Acquire 100% Interest in Algoma-Talisman Minerals Land Package Contiguous to the Charlie Mortimer Project

The Company has entered into a Letter of Agreement with Algoma-Talisman Minerals Limited (ATM) which provides Red Pine with the exclusive option to acquire a 100% right, title and interest in the Property that is immediately contiguous to the Charlie Mortimer Project. Located in the Coppell, Newton and Dale Townships, the property consists of approximately 21,500 hectares across 3 townships.

The Agreement

In order to acquire 100% of ATM's right, title and interest in the Property, Red Pine is required to:

  (i)   pay ATM an aggregate sum of $100,000 cash; and
     
  (ii)   issue to ATM an aggregate of one-million eight-hundred thousand (1,800,000) common shares of Red Pine and seven-hundred and fifty thousand (750,000) Common Share purchase warrants exercisable at $0.20 per Common Shares for a period of 24 months which will be subject to resale restrictions imposed by applicable securities laws, including a four month hold period on such securities.
     
  (iii)   issue to ATM seven-hundred thousand (700,000) Common Shares if and when a final decision is made to bring the ATM Property into commercial production or if Red Pine sells more than 51% of its interest in the ATM Property to an arm's length third party.
     
  (iv)   grant to ATM a 3% NSR where Red Pine has the exclusive right until 3 years after commencement of commercial production, to buy each 1% of this NSR for the sum of one million dollars ($1,000,000). Should Red Pine elect to purchase the entire NSR, it would result in an aggregate cash payment of three million dollars ($3,000,000).

Gibson Purchase and Sale Agreement

The Company has entered into a Purchase and Sale agreement with the Gibson party to acquire a 100% undivided right, title and interest in the Property that is immediately contiguous to the Charlie Mortimer Project and adjoins the historic Kenty Mine Property (250,000 t of 8 g/t Au) on the south side. Located in the Swayze Township, the Property consists of 1 claim block.

The Agreement

In order to acquire a 100% undivided right, title and interest in the Gibson Property, Red Pine is required to:

  (i)   pay the Seller an aggregate sum of $15,000 cash; and
     
  (ii)   issue to the Seller two-hundred thousand (200,000) common shares of Red Pine which will be subject to resale restrictions imposed by applicable securities laws, including a four month hold period on such shares.
     
  (iii)   grant the Seller a 2% NSR where Red Pine has the exclusive right, at any time, to buy 50% (or 1%) of this NSR for the sum of one million dollars ($1,000,000) and an additional 50% (or 1/2%) of the remaining 1% for seven-hundred thousand dollars ($750,000).

The above agreements are subject to completion of due diligence and regulatory approval, including any required approval of the TSX Venture Exchange.

Trenching Results - Abitibi West Project

Trench 5, located in the western part of the Abitibi West Property (Heenan Block), excavated a pyritic, carbonate zone hosted in feldspar porphyry and associated with a 2 metre-wide quartz vein and an extensive quartz-carbonate stockwork system. Preliminary sampling of the auriferous zone resulted in 58 grab samples from Trench 5 assaying > 1 g/t gold and as high as 99.9 g/t gold. The higher gold values occur where chalcopyrite is present. Soil sampling results indicate numerous gold-in-soil anomalies in the local area of Trench 5 that will be investigated during Red Pine's 2010 spring/summer exploration program.

Trenching Results - Charlie Mortimer Project

Trenching focused on iron-tholeiitic mafic volcanics and contacting feldspar porphyry intrusive rocks within the claim group. 61 grab samples and 198 channel samples were collected from the 13,407 square metres of trenching/outcrop cleaning. Appreciable gold values were returned from sampling on 10 of the 18 trenches. The most encouraging results were from Trench C1. Channel sampling on Trench C1 returned 23.74 g/t gold over 12 metres including 54.98 g/t gold over 5 metres in an area where flat-lying and sub-vertical quartz-carbonate stockworks exist. Red Pine's spring/summer 2010 exploration program will focus on delineating a strike length to the economic gold-bearing zone of the C1 Trench.

A total of 1,545,000 options were reissued to Directors, Officers and Consultants of the Company on March 15, 2010 under the terms of the incentive stock option plan of the Company filed with the TSX Venture Exchange and approved by shareholders at the last Annual General Meeting of Shareholders of the Company held on January 27, 2010. The options are exercisable at a price of $0.10 per share for a period of four years and are subject to a four-month hold period from the date of the issuance.

Quentin Yarie, P.Geo. is the Vice President of Exploration and is the qualified person for the technical information contained in this press release.

This News Release contains forward-looking statements. Forward-looking statements are statements which relate to future events. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

Cautionary Statement: 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.

Contact Information

  • Red Pine Exploration Inc.
    Brent Nykoliation
    Vice President of Business Development
    (416) 364-7024
    (416) 364-2753 (FAX)
    bnykoliation@redpineexp.com
    or
    Red Pine Exploration Inc.
    Kirk McKinnon
    President & CEO
    (416) 364-7024
    (416) 364-2753 (FAX)
    or
    Red Pine Exploration Inc.
    Richard Schler
    Chief Operating Officer & CFO
    (416) 364-7024
    (416) 364-2753 (FAX)
    http://www.redpineexp.com