ROUYN-NORANDA, QUÉBEC--(Marketwire - Nov. 22, 2012) - Radisson Mining Resources Inc. (TSX VENTURE:RDS) announces today that it has sold its remaining 49 % interests in the Detour East property (Massicotte township) to Balmoral Resources Ltd.
Under an agreement between the company and Radisson Miming Resources Inc., Balmoral will acquire from Radisson the entirety of Radisson's retained interest in the Detour East Property by making a cash payment to Radisson of $200,000, issuing in favour of Radisson 300,000 common shares and granting to Radisson a 2% net smelter royalty ("NSR") on the mining claims which comprise the Detour East Property. Balmoral may, at any time, purchase the first half of the NSR royalty for a cash payment of $1,000,000 and may similarly purchase the second half of the NSR for an additional cash payment of $2,000,000. The shares to be issued will be subject to standard 4 month hold provisions from the date of issue.
Under the terms of an existing option agreement between Balmoral and Radisson the Company had completed payments and work expenditures required to vest 51% interest in Radisson's interest in the Detour East Property. The existing option agreement provided for Balmoral to earn an additional 9% in the property via completion of an additional $1,500,000 in exploration expenditures on the property prior to formation of a joint venture to further explore and develop the Property.
Radisson will now concentrate its exploration and development activities on its 100 % owned O'Brien / Kewagama gold projects.
The O'Brien/Kewagama gold project, located in the Malartic/Cadillac portion of the Abitibi gold belt, consists of 36 claims covering 729 hectares straddling the prolific Cadillac break over a strike length of about three kilometers. From 1933 to 1956 the O'Brien gold mine, located on the property, produced 590,000 ounces of gold from 1.3 million tons of ore at a grade of 0.45 ounce of gold per ton, making it the highest-grade gold producer in the camp. The mine reached a depth of 3,450 feet.
The O'Brien/Kewagama project is located approximately five kilometers west of and on strike from Agnico-Eagle's Lapa gold mine, also centered on the Cadillac break, and approximatively four kilometers southeast of Agnico-Eagle's Laronde mine, now surpassing 3,000 meters (10,000 feet) in depth. It is located some 22 km from the Osisko Canadian Malartic Gold Mine, also centered on the Cadillac Break, and one of the largest open pit gold mines in Canada.
Previous exploration by the company on the project resulted in the discovery of an indicated resource of 218,540 ounces (based on an indicated resource of 270,000 tons at an uncut grade of 0.56 ounce per ton and an inferred resource of 182,000 tons at an uncut grade of 0.37 ounce per ton) as defined in the Scott Wilson Roscoe Postle National Instrument 43-101 report of May, 2007.
These resources, all outlined above the 650-metre level, are located over 800 meters east of the old O'Brien mine workings, represent a new discovery of high-grade mineralization of the same type mined and produced at the O'Brien gold mine.
Eugene Gauthier, Ing (OIQ), acts as the qualified person for the company and has reviewed the contents of this release.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.