Northern Manganese Acquires 51 Percent Interest in Redcliffe Gold Project

Northern Manganese (ASX:NTM) announced that it has acquired a 51 percent interest in the Redcliffe gold project from Redcliffe Resources Ltd. (ASX:PREDA).
As quoted in the press release:

The transaction was undertaken pursuant to an acquisition and farm-in agreement, with consideration payable to RCF being cash in the amount of $260,000 and the allotment of 13,888,889 fully paid ordinary NTM shares. The transaction is expected to see NTM transition from manganese explorer to gold producer in the near term. The RGP is located approximately 40 to 55 km north-east of Leonora in the Eastern Goldfields of Western Australia. The RGP encompasses granted mining leases of an area of 47 square kilometres that cover a substantial strike length of the Mertondale Shear Zone, a feature that has been demonstrated to host significant gold mineralisation in many small to moderate sized gold deposits.

Highlights:

• Northern Manganese has acquired a 51% stake in Redcliffe Gold Project Leonora, WA, and assumed project management
• Mineral resource of 278,100 ounces of gold over eight deposits
• Considerable scope to expand resources
• Potential for near term gold production
• Agreement also entered into to merge with Redcliffe Resources
• Merger to be effected by way of a Redcliffe Scheme of Arrangement

Garry Connell, chairman of Northern Manganese, commented:

I have always thought that our previous manganese exploration strategy was perhaps too high-risk for a small company, particularly in the depressed environment for junior resources companies such as we are currently experiencing. As shareholders are aware, upon joining the Board in January 2015, my plan has been to seek out a more advanced opportunity, something with an existing resource that could be quickly brought into production, and which would generate cash-flow with which we could seek out further value-adding opportunities.

Click here to read the full Northern Manganese (ASX:NTM) press release.