SOURCE: Rae Wallace Mining Company

July 08, 2010 13:22 ET

Rae Wallace Mining Company Acquires Rights to Eight Peru Gold Properties

RENO, NV--(Marketwire - July 8, 2010) -  Rae Wallace Mining Company (PINKSHEETS: RAEW) (www.raewallace.com) of Reno, NV, is pleased to announce it has completed an option agreement with Geologix Explorations Inc. (TSX: GIX) of Vancouver, BC, granting Rae Wallace the right to earn a 100% interest in eight Peruvian gold-silver properties. Rae Wallace and Geologix signed a Letter of Intent on March 8, 2010 and signed the definitive agreement on July 8, 2010. 

The agreement covers the Liscay, Largatija, Lachoc, Mirko, San Felipe, Sura, Toro Blanco and Cayhua properties which are currently owned 100% by Geologix. 

Pursuant to the terms of the option agreement, in order to earn a 100% interest in the Properties, Rae Wallace is to:

  1. Pay Geologix US$30,000 (payment delivered March 8, 2010);
  2. Pay Geologix US$67,500; (payment delivered June 8, 2010); Geologix will use this payment to renew the concessions for 2010 (concessions renewal payments were made June 14, 2010)
  3. Deliver to Geologix shares of Rae Wallace valued at US$250,000 with ½ warrant. The warrants can be exercised within two years at a strike price of $0.375 per full warrant.

Upon completion of the above exchanges and payments, Rae Wallace shall own the Properties 100%, subject only to a 2% precious metals NSR and a 1% base metals NSR payable to Newmont Peru S.R.L. on portions of Liscay, Largatija, Lachoc, and Mirko.

George Cole, President/CEO of Rae Wallace, says, "We are very pleased to complete this acquisition with very favorable terms. These properties, located in the Andes Mountains of south-central Peru, are high-quality, exploration stage, gold-silver properties which will form the foundation for Rae Wallace's growth over the next few years. Peru is an under-explored, stable, pro-mining country with an attractive foreign investment climate. We are looking forward to the initiation of our exploration program which should start shortly."

About Rae Wallace: Rae Wallace is a US based mineral resource company trading on the pink sheets. The company was reorganized in 2007 and is engaged in the acquisition and exploration of high quality, gold and silver properties in Peru. Combining quality projects with a board and management team which has worldwide technical experience and a discovery track record, the company will advance its properties through the exploration cycle, adding value and, if appropriate, partner with experienced mine builders and operators to promote corporate growth and add shareholder value. The company also has the management expertise to build its own development and production teams for suitable projects. Timberline Resources Corporation (NYSE Amex: TLR) (TSX-V: TBR) is a major shareholder with board seats.

Safe Harbor Statement: This release contains forward-looking statements with respect to the results of operations and business of Rae Wallace Mining Company which involves risks and uncertainties. The Company's actual future results could materially differ from those discussed. The Company intends that such statements about the Company's future expectations, including future revenues and earnings, and all other forward looking statements be subject to the "Safe Harbors" provision of the Private Securities Litigation Reform Act of 1995.

Contact Information

  • For additional information, please contact:
    George Cole
    775-315-0728
    Email Contact