Teuton options Yellow Chris claims to Redhill Teuton Resources Corp.: Yellow Chris South Claims Optioned to Redhill Resources Corp. in $4.5 Million Deal
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VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/06/13 -- Teuton Resources Corp. ("Teuton") (TSX VENTURE: TUO) (FRANKFURT: TFE) (OTCBB: TEUTF) is pleased to report that it has optioned its Yellow Chris South claims to Redhill Resources Corp. on terms as set out below. The property (see map) is located east of the town of Iskut in the Red Chris region of northwestern British Columbia (northern part of the "Golden Triangle").
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The claims lie a few kilometers northeast of the recent discovery hole reported by Colorado Resources on its North Rok property, which ran 242 metres averaging 0.63% copper and 0.85 g/t gold. Colorado is currently drilling a step-out to the discovery hole.
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On the Yellow Chris South claims previous work by Teuton has delineated an area of magnetic highs associated with adjacent magnetic lows. Limited soil geochemical sampling has shown values running from 5 to 271 ppm copper. The geophysical setting is similar to that at the North Rok property.
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Redhill Resources Corp. is a TSX-V listed company that had $7.5 million worth of working capital as at the end of its last financial reporting period (Nov. 30, 2012). It plans an aggressive program of property wide soil sampling, geological mapping and IP surveying over the Yellow Chris South claims to start immediately. Positive results from such work will lead to a diamond drilling program.
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To earn a 50% interest, the option requires Redhill to pay to Teuton $300,000 over four years, with a $75,000 downstroke upon signing. Redhill must also make four share payments to Teuton of 350,000 shares each (the first within five days of regulatory approval). The first year work commitment is $450,000 rising to $4,500,000 in aggregate over the four year term of the option.
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Redhill has a second option to earn another 10% interest in the property, bringing its total interest to 60%. To exercise this second option it will have to give Teuton another $200,000 in cash, 200,000 in shares and spend another $2,000,000 on the property.
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D. Cremonese, P.Eng., president of Teuton Resources said: "We are delighted to have optioned the Yellow Chris South claims to a well-funded company such as Redhill Resources, and look forward to the immediate onset of exploration work in this very promising area."
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The option agreement is subject to regulatory approval
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The Qualified Person for the purposes of this news release is D. Cremonese, P.Eng.
Respectfully:
"Dino Cremonese, P.Eng."
President, Teuton Resources Corp.
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To view the map associated with this release, please visit the following link: https://media3.marketwire.com/docs/506ebs1.pdf.
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| V:RHR Depth by Price @11:12:23? |
| Bid | | Ask |
| Orders | Size | Price | | Price | Size | Orders |
| 4 | 89,000 | 0.065 | | 0.07 | 310,000 | 3 |
| 15 | 396,000 | 0.06 | | 0.075 | 446,000 | 11 |
| 12 | 241,800 | 0.055 | | 0.08 | 1,109,000 | 11 |
| 7 | 660,000 | 0.05 | | 0.085 | 288,000 | 4 |
| 5 | 105,000 | 0.045 | | 0.09 | 580,000 | 5 |