Redcorp Ventures Ltd.
TSX : RDV

Redcorp Ventures Ltd.

May 29, 2009 15:04 ET

Redcorp Announces Appointment of Receiver by Court Order

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 29, 2009) - Redcorp Ventures Ltd. ("Redcorp") (TSX:RDV) today announced that, in response to a petition brought by its secured Noteholders, the British Columbia Supreme Court, pursuant to its filing with Redfern Resources Ltd. (together the "Petitioners") under the Companies' Creditors Arrangement Act ("CCAA") on March 4, 2009 (the "Initial Order") as amended by a second Court order on March 27, 2009 (the "Extension Order"), determined that the stay of proceedings as extended in the Extension Order is no longer appropriate and appointed McIntosh & Morawetz Inc. receiver of the Petitioners' current and future personal assets, undertakings and properties. The powers of the receiver specifically exclude:

(a) any real property or land interests, including, without limitation, any interests held in accordance with titles issued in accordance with the Land Title Act of British Columbia including the Tulsequah Project;

(b) any interest in certain asset backed commercial paper (the "ABCP") secured in favour of HSBC Bank Canada except for interest owing in respect of the predecessor notes to the ABCP;

(c) amounts held by CIBC Mellon Trust Company in an interest escrow account and payable to the Noteholders in accordance with the Initial Order; and

(d) any amounts deposited at HSBC Bank Canada and Royal Bank of Canada or elsewhere by the Redfern Resources Ltd. and secured in favour of those parties in accordance with certain safekeeping agreements under the Mines Act and Standby Letters of Credit issued under the Fisheries Act.

Redcorp is a Vancouver based mineral exploration and development company with active projects in British Columbia, Canada and Portugal. Further information on Redcorp and the Tulsequah Project can be obtained on our website at www.redcorp-ventures.com and at Redfern's website at www.redfern.bc.ca.

ON BEHALF OF THE BOARD OF DIRECTORS OF REDCORP VENTURES LTD.

Terence Chandler, President and CEO

Certain of the statements made and information contained herein may contain "forward-looking information" within the meaning of the British Columbia Securities Act, Alberta Securities Act and Ontario Securities Act or "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 of the United States, including, without limitation, statements concerning the Company's plans at its Tulsequah Project and other mineral properties and the Company's revised economic evaluation of the Tulsequah Project, which involve known and unknown risks, uncertainties and other factors, some of which are beyond the Company's control which may cause the actual results, performance or achievements of the Company, or industry results and/or consensus metal prices, to be materially different from any future results, metal prices, performance or achievements expressed or implied by such forward-looking information or forward-looking statements.
Forward-looking information and forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking information or forward-looking statements, including, without limitation, material factors and assumptions relating to, and risks and uncertainties associated with, risks that refinancing efforts when required and on acceptable terms will be successful while under Court protection pursuant to the Companies' Creditors Arrangement Act (Canada), risks relating to the inability to achieve the conditions required to receive the funding initially contemplated by the Company's gold sale agreement or its MRI contingent loan facility, risks related to the ability to secure capital leasing arrangements for the purchase of mining equipment on suitable terms, if at all, risks concerning the ultimate recovery of the Company's investment in new long-term Asset-Backed Commercial Paper Notes ("ABCP") that were issued on January 21, 2009 and which have been provided as security in exchange for a term bank loan, risks and uncertainties relating to the interpretation of drill results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, metal price fluctuations, the achievement and maintenance of planned production rates, the accuracy of component costs of capital and operating cost estimates, current and future environmental and regulatory requirements, favourable governmental relations, the availability of permits and the timeliness of the permitting process, the availability of shipping services, the availability of specialized vehicles and similar equipment, costs of remediation and mitigation, maintenance of title to the Company's mineral properties, industrial accidents, equipment breakdowns, contractor's costs, remote site transportation costs, materials costs for remediation, labour disputes, the potential for delays in exploration or development activities, timely completion of future NI 43-101 compliant reports, timely completion of future feasibility studies, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, continuing global demand for base metals, the fact that the 2007 Feasibility Study is based upon probable mineral reserves and not proven mineral reserves, expectations and beliefs of management and other risks and uncertainties, including those described under "Risk Factors" in the Annual Information Form of the Company filed on SEDAR on March 31, 2008, and in each subsequent management's discussion and analysis.
Forward-looking information and forward-looking statements for time periods subsequent to 2008 involve longer term assumptions and estimates than forward-looking information and forward-looking statements for 2008 and are consequently subject to greater uncertainty. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking information or forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking information or forward-looking statements. When used herein, the words "anticipate", "believe", "estimate" and "expect" and similar expressions, as they relate to the Company or its management, are intended to identify forward-looking information or forward-looking statements relating to the business and affairs of the Company. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information or forward-looking statements, whether as a result of new information, future events or otherwise.

News Release 09-11

Contact Information

  • Redcorp Ventures Ltd.
    Terence Chandler
    President and CEO
    604 669-4775 or Toll Free: 1-888-669-4775
    604 669-5330 (FAX)
    www.redcorp-ventures.com