VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 10, 2011) - Redhill Resources Corp. (TSX VENTURE:RHR), ("Redhill" or "the Company"), and Mutiny Gold Ltd. ("Mutiny") have agreed to amend the Farm-In agreement dated July 20, 2010.
The original agreement required Mutiny to complete a Positive Feasibility Study ("PFS") – as referenced in Section 2.1(b)(i), 2.2(c), 3(c). The agreement has been amended to allow Mutiny to earn the remaining 30% of Gullewa, by paying $4 million AUD to Redhill, without the need to complete a PFS. Redhill will still retain a 10% Net Profit Interest ("NPI").
Mutiny has advised Redhill that it has secured an $11 million AUD loan and gold hedging credit facility with global investment bank, Credit Suisse. Drawdown of the funds is subject to a number of standard conditions precedent which are expected to be completed in the near future.
The funding facility with Credit Suisse will provide Mutiny the $4 million AUD to complete the 100% ownership of the Gullewa tenements (subject to a 10% NPI). The balance of the funds will be used to complete a Definitive Feasibility Study.
REDHILL RESOURCES CORP.
Graham Harris, Chairman
"This news release may contain forward–looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements."
"The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release."
Contact Information:
Investor Relations
604-662-8184
investor@redhill-resources.com
www.redhill-resources.com