Redhill Resources Corp. (CVE:RHR) said Wednesday it has struck a deal allowing it to acquire a 100 percent interest in a prospecting license next to the Nyakagwe property in Tanzania, East Africa.
The acquisition adds 100 hectares to the project, bringing the total number of hectares to roughly 500, the company said.
The Nyakagwe property is strategically located on the Bulyanhulu regional trend within six kilometres of Barrick Gold's (TSE:ABX) 12 million-ounce Bulyanhulu gold mine.
The property consists of forty-six primary mining licenses (PMLs) and one prospecting license (PL) that is contiguous to the company's current land holdings.
The Nyakagwe PMLs and PLs are surrounded entirely by prospecting licenses and applications for such licenses owned and now being explored by Tembo Gold Corp, Redhill said.
The deal signed today is with Thamani Mines, and requires Redhill to make a total of C$250,000 in cash payments, issue 1.00 million shares, and invest C$300,000 in exploration in stages over a three year period.
Redhill said it is fully funded, and is planning an extensive exploration program on the property for this year, which will include mapping, sampling, trenching and induced polarization (IP).
The aim of the campaign will be to define drill targets for the upcoming exploration season.
A finder's fee of the maximum allowed under the policies of the TSX Venture Exchange will be paid in cash in connection with the acquisition, Redhill said.