VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 28, 2016) - Redhawk Resources, Inc. ("Redhawk" or the "Company") (TSX:RDK)(FRANKFURT:QF7) announced today that the Company has been provided with a formal notice of termination dated October 28, 2016 (the "Termination") by Anglo American US Holdings Inc. ("Anglo American" and together with Redhawk, the "Parties") in regard to the joint venture through which the Parties have been performing exploration and development of the copper-molybdenum project in San Manuel, Arizona (the "Copper Creek Project") pursuant to an agreement dated as of November 25, 2014. As a result of the Termination, as of October 28, 2016 Anglo American will cease to have any interest in the Copper Creek Project and the project will be 100% owned by Redhawk.
Joe Sandberg, President and CEO of Redhawk commented: "The joint venture with Anglo American enabled the Company to retain the entire Copper Creek Project and advance our knowledge of the project through approximately US$7m in expenditures during a challenging period for the base metals mining sector. The main focus during the past two years has been regional exploration primarily in portions of the expansive property that had not previously been reviewed. Our focus will now turn back to advancing the development of the existing large resource and considering alternative strategies. We thank Anglo American for their interest, assistance and efforts during the past two years."
The Company continues to hold discussions with various strategic groups, and a special committee of the board of the Company, consisting of independent directors, has been appointed to review and evaluate all value-add strategic alternatives.
The scope of strategic alternatives to be considered is broad and could include, but not be limited to, a strategic investment in the Copper Creek Project or the Company by a third party, a joint venture arrangement, the sale of all or a portion of the Copper Creek Project, a sale of the Company, a business combination with another entity, or some combination of the foregoing.
Over the past several months, the Company has conducted discussions and executed confidentiality agreements with a number of interested parties regarding potential strategic alternatives and will continue to advance those discussions. At present, there can be no assurance as to what, if any, strategic alternatives might be pursued by the Company. The Company does not intend to disclose further details with respect to its review of strategic alternatives unless, and until, the board of directors of the Company has approved a specific transaction or otherwise determined that further disclosure is warranted.
The Company has extended the due diligence review period to November 15, 2016 in regard to the option agreement with Copperzone Resources Ltd. on four licensed properties in Zambia.
Redhawk is a Canadian-based resource exploration and development company with a new focus on the advancement of copper projects, including copper/cobalt projects in Africa, as well as the continued advancement of the Copper Creek Project in San Manuel, Arizona. The copper/cobalt projects in Zambia, which the Company has the right to earn an interest in through an Option Agreement with Copperzone Resources Ltd., consists of approximately 779 km² of prospective copper/cobalt property. The Copper Creek Project consists of approximately 75 km² of contiguous patented and unpatented mining claims and state prospecting permits, located about 112 km northeast of Tucson, Arizona.
ON BEHALF OF THE BOARD
J. Stephen Barley, Executive Chairman
Forward Looking Statements
This news release includes certain "forward-looking information" and "forward-looking statements" (collectively "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein, including without limitation, statements relating the future operating or financial performance of the Company, are forward-looking statements.
Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible", and similar expressions, or statements that events, conditions, or results "will", "may", "could", or "should" occur or be achieved. Forward-looking statements in this news release relate to, among other things: the Company's focus turning back to advancing the development of the existing resource in the Copper Creek Project and considering alternative strategies; the scope and outcome of the strategic alternatives review; the nature of a possible strategic alternatives transaction; and the advancement of discussions with interested parties regarding potential strategic alternatives. There can be no assurance that such forward-looking statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made and are based upon a number of assumptions and estimates that, while considered reasonable by management of the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements and management of the Company has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation, the ability of the Company to turn back its focus on advancing the Copper Creek Project and considering possible alternative strategies; the ability of the Company to advance discussions with interested parties; the availability of any one or more strategic alternatives to the Company; and the ability of the Company to pursue any strategic alternatives transaction.
Readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these matters. Except as required by law, Redhawk does not assume any obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.