Redcorp Ventures Ltd.
TSX : RDV

Redcorp Ventures Ltd.

December 22, 2008 09:00 ET

Redcorp Ventures Ltd.: Tulsequah Project Construction & Permitting Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 22, 2008) - Redcorp Ventures Ltd. (TSX:RDV) ("Redcorp" or the "Company") and its wholly-owned subsidiary, Redfern Resources Ltd. ("Redfern"), wish to provide an update on construction and permitting at the Tulsequah Project, and corporate activities of the Company.

Construction Update

As at December 18, 2008, construction activities at the Tulsequah Chief Mine entered a planned three week suspension phase for the holiday period. The Board of Directors of Redcorp has extended the three week suspension phase while it awaits the Project Execution Plan from Global Project Management Corporation ("Global Project Management"). The suspension of construction activities may continue for an extended period, at the discretion of the Board. During this time the Company will focus on completing construction of the Air Cushion Barge ("ACB") and permitting items critical to satisfying Gold Wheaton Gold Corp. ("Gold Wheaton") funding conditions. Detailed engineering, which is approximately 85% complete, will also continue during this period.

As a reminder, Global Project Management was appointed on December 2, 2008 to head the Tulsequah Chief Mine project management team and provide Owner's representation on site and with external contractors. The Project Execution Plan will also incorporate a review and update to capital expenditure and schedule estimates. The results of this plan will be used to guide the resumption of site construction activities and the most efficient utilization of resources to complete the mine construction. The suspension does not include activities related to the construction and delivery of the ACB and towing equipment which is currently projected for completion in late January 2009.

Permitting Update

The Company is proceeding with the finalization of key project permitting initiatives, including the remaining Environmental Assessment Approval processes for the use of the ACB, and the permits and Coastal Consistency Management approvals required for the operation of the ACB in Alaskan waters. A required public meeting was recently conducted in Juneau, Alaska on December 11, 2008 and the review processes are in progress. Redcorp is also filing final materials for an amendment to its existing Mines Act permit to allow the construction and operation of the proposed tailings management facility and the main underground development at the site. These permits are critical for the efficient resumption of activities and are critical milestones for receipt of further mine construction funding under the terms of the Company's agreement with Gold Wheaton. Securing these permits in advance of construction resumption will allow the Company to avoid further cost increases and construction delays as experienced to date.

Corporate Update

On April 21, 2008, Redcorp arranged a loan of $64 million from HSBC Bank Canada ("HSBC") secured by its existing non bank sponsored Asset Backed Commercial Paper ("ABCP") investments. Redcorp commenced drawdown on this facility in October 2008 to fund on-going construction and general corporate purposes. Under the terms of an updated loan announced on August 22, 2008, the original loan of $64 million will be replaced by an $85 million loan upon distribution of new notes after completion of the ABCP restructuring which is under the management of the Pan-Canadian Committee. The restructuring was originally intended to be completed in late October but the date was subsequently extended to late November, then December 19, 2008 and most recently to January 16, 2009, under Court orders. Redcorp may extend the suspension phase to conserve financial resources until the restructuring is complete and its loan with HSBC is increased to $85 million.

Redcorp believes it is prudent to reduce its short-term expenditures and manage its existing cash, which is presently in excess of $20 million, for the most critical aspects of project development.

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 or by calling toll-free to Troy Winsor, Manager of Investor Relations or Salina Landstad, Manager of Public Relations at the contact numbers listed below.

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, the ultimate recovery, if any, of the Company's investment in ABCP that has since August 2007 been the subject of a liquidity restructuring plan proposed by the Pan Canadian Committee representing the Montreal Accord and sanctioned on August 18, 2008 by the Ontario Court of Appeal pursuant to section 6 of the Companies' Creditors Arrangement Act (leave to appeal to the Supreme Court of Canada was refused on September 19, 2008) and expected to be finalized and distributed on or before January 16, 2009, risks relating to the availability of financing for activities when required and on acceptable terms, risks relating to the inability to achieve the conditions required to receive full funding contemplated by its gold sale agreement or the MRI contingency loan, the risk that HSBC Bank Canada will not fulfill its loan obligations, risks related to the ability to secure capital leasing arrangements for the purchase of mining equipment on suitable terms, if at all, 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 08-28

Contact Information

  • Redcorp Ventures Ltd.
    Troy Winsor
    Manager, Investor Relations
    (604) 466-8934 / 1-888-225-9662
    or
    Redcorp Ventures Ltd.
    Salina Landstad
    Manager, Public Relations & Corporate Communications
    (604) 639-0135 / 1-888-669-4775 ext. 103
    Website: www.redcorp-ventures.com