|By Marketwired .||
|August 27, 2014 08:30 AM EDT|
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/27/14 -- Redhawk Resources, Inc. ("Redhawk" or the "Company") (TSX:RDK)(FRANKFURT:QF7) is pleased to announce that it has entered into a non-binding letter agreement with Howe Mining Projects Inc. ("Howe"), a company that consists of a team of internationally known geological and mining consultants. The alliance has been formed initially to jointly pursue opportunities to acquire, develop and operate small mines and through the use of cash flow from operations develop a pipeline of longer term larger projects. The initial focus will be on precious metals with near term production capability.
Stephen Barley, Executive Chairman of Redhawk stated: "We are extremely pleased to partner with Howe in this new initiative for Redhawk. The recently announced joint venture with Anglo American provides the Company with a top tier international mining company as a joint venture partner for our Copper Creek project in Arizona with the necessary personnel in place to fulfill our obligations as operator on that project. The execution of a definitive agreement with Anglo American is anticipated to occur shortly which provides for Redhawk shareholders to retain a substantial interest and exposure to copper through the joint venture on Copper Creek."
The alliance with Howe will provide a complementary team of experienced mine analysts, developers and operators for this new initiative for Redhawk. The goal of the alliance is to finance the development of new projects through cash flow from operations. Redhawk and Howe are currently assessing multiple small gold mining projects that either are operational or can be fully permitted and operational within twelve to eighteen months; need a lower level of start-up capital; can be operated on a highly profitable basis; and have a short payback period for invested capital. The strategy is to jointly assess the viability of existing projects; complete all development work; and assemble and manage an operating team to place each project into production. Redhawk and Howe will participate in each project based upon an agreed contribution formula and intend to grow through the acquisition of a number of smaller projects, providing the necessary cash flow to enable the development of a pipeline of projects of increasing size. This model is intended to provide for increased stability and long term growth with a reduction in dilution to Redhawk stakeholders. Gold mining operations within North America will be the initial focus of the alliance with Howe.
About Howe Mining Projects Inc.
Howe Mining Projects Inc. is a newly formed company founded by a seasoned team of engineers and geologists who have worked as independent mining and geological consultants and contractors for over 25 years. Howe Mining Projects' primary focus is the identification, acquisition, development and operation of mineral assets located in North America.
Redhawk is a Canadian-based resource exploration and development company with a current primary focus on the advancement of the Copper Creek copper-molybdenum project in San Manuel, Arizona through a joint venture with Anglo American. The Copper Creek property consists of approximately twenty-nine square miles of contiguous patented and unpatented mining claims and state prospecting permits, located about 70 miles northeast of Tucson, Arizona. The property is in the prolific southwest US porphyry copper belt and the property is within sight of the former BHP Kalamazoo/San Manuel copper smelter and mine and within 30 miles of an existing operating copper mill and smelter. The area is a mining friendly and politically secure location with excellent and readily accessible infrastructure including power, rail, water, roads and qualified consultants. Redhawk is implementing a new strategy for sustainable long term growth through an alliance with Howe Mining Projects Inc. focusing on the identification, acquisition, development and operation of a number of small mining projects within North America with near term production capability.
ON BEHALF OF THE BOARD
J. Stephen Barley, Executive Chairman
Cautionary Note Regarding Forward-Looking Information
Certain of the statements and information on this news release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities legislation. In certain cases, forward-looking statements or information can be identified by the use of words such as "believe", "intend", "may", "will", "should", "plans", "anticipates", "believes", "potential", "intends", "expects" and other similar expressions. Forward-looking statements and information relate to, among other things: the Company's alliance with Howe and the acquisition, development and operation of small mines by the Company and Howe, the completion of satisfactory financial, legal and environmental due diligence by Anglo American on the Copper Creek Project and the execution of a definitive agreement with Anglo American.
Key assumptions upon which the Company's forward-looking statements and information are based include the following: the availability of suitable projects on terms and conditions acceptable to the Company and Howe; the price of copper and gold will not fall significantly; there being no significant adverse changes in currency exchange rates; there being no significant changes in the ability of the Company to comply with environmental, safety and other regulatory requirements; the Company's ability to obtain regulatory approvals in a timely manner; the Company's ability to achieve its growth strategy; and the Company's ability to satisfy all conditions required to complete the transaction with Anglo American. These assumptions should be considered carefully by readers. Readers are further cautioned that the foregoing list of assumptions is not exhaustive. Although the Company believes that the assumptions on which the forward-looking statements or information are made are reasonable, based on the information available to the Company on the date such statements were made, no assurances can be given as to whether these assumptions will prove to be correct.
Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements or information. Such risks, uncertainties and other factors include among others, the following: the Company and Howe may not be able to locate suitable projects and may not be able to successfully operate any of such projects; the Company may not be able to successfully satisfy the conditions to the joint venture with Anglo American, or obtain all applicable government, regulatory and shareholder consents required to complete the transaction with Anglo American, that the terms of those consents may not be acceptable to the Company, or, assuming the Company is able to successfully complete the transaction with Anglo American, the Company is not able to achieve expected results following the transaction with Anglo American; copper price volatility; discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries; mining operational and development risk; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign investment; currency fluctuations; speculative nature of copper exploration; global economic climate; ability to obtain financing; dilution; share price volatility; competition; loss of key employees; additional funding requirements; and defective title to mineral claims or property, as well as those factors discussed under the heading "Risk Factors" in the Company's Annual Information Form for the year ended March 31, 2014, which is available on SEDAR at www.sedar.com. Should one or more of these risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements and information.
The forward-looking statements and information contained in this news release are made as of the date indicated in that information and, accordingly, are subject to change after such date. We do not undertake to update any forward-looking statements or information, except as, and to the extent, required by applicable securities laws. For the reasons set forth above, investors should not place undue reliance on forward-looking statements and information. The forward-looking statements and information contained in this news release are expressly qualified by this cautionary note.