Dundee Resources Limited

April 12, 2011 14:53 ET

Dundee Resources Limited Agrees to Participate in Exploration Program

TORONTO, ONTARIO--(Marketwire - April 12, 2011) - Dundee Resources Limited ("Dundee Resources") announces today that it has agreed in principle to participate with Rencore Resources Ltd. ("Rencore") and Bold Ventures Inc. ("Bold") in the exploration programs led by them in the "Ring of Fire" region in Northern Ontario (together, the "ROF Projects"). The Rencore and Bold exploration team, formerly with Noront Resources Ltd., has had extensive experience and prior success in the "Ring of Fire", most notably with the Eagle, Blackbird and Thunderbird Deposits. The exploration team has determined that the "Ring of Fire" geological outline could be extended in shape and size, and through Rencore and Bold has tied up a series of interesting geophysical anomalies that require more exploration study, and possibly drilling, in a multi- property program that will occur over the next two or three years.

Dundee Resources has agreed, subject to final contractual completion and tax structuring, to provide up to an aggregate of $5 million of financing, $2.5 million towards each of the Rencore and Bold ROF Projects, and will earn a one-third interest in the ROF Projects and any extensions thereof.

In addition, Dundee Resources has agreed to invest approximately $1 million in Rencore units, comprised of one Rencore common share and one-half of a Rencore common share purchase warrant and approximately $1 million in Bold units, comprised of one Bold common share and one-half of a Bold common share purchase warrant, at $0.245 and $0.225 per unit, respectively.

ABOUT DUNDEE RESOURCES

Dundee Resources is a wholly-owned subsidiary of Dundee Corporation (TSX:DC.A) and carries out Dundee Corporation's resource investments and initiatives.

Contact Information

  • Dundee Resources Limited
    Ned Goodman
    Chairman
    (416) 365-5665

    Dundee Resources Limited
    Murray John
    President and Chief Executive Officer
    (416) 365-5645