Edgewater Exploration Acquires Red Back Mining’s Enchi Gold Project, Ghana

Edgewater Exploration Acquires Red Back Mining’s Enchi Gold Project, Ghana

Mr. Edward Farrauto, President and CEO of Edgewater Exploration Ltd. (“Edgewater” or the “Company”)(CA:EDW  0.75, +0.14, +22.95%) announces its option agreement with Red Back Mining Inc. (“Red Back”) (CA:RBI  25.30, +0.48, +1.93%). Edgewater will then get an undivided 51% interest in Red Back’s legal and beneficial ownership in the Enchi Gold Project, Ghana, West Africa.  This is a total revenue of a 45.9% direct interest in the Project taking into account the 10% project interest held by the Government of Ghana.

The press release is quoted as saying:

To earn 51% of Red Back’s ownership in the Enchi Project licences (45.9% direct interest in the Project) Edgewater is required to spend a total of C$5.0 million on work expenditures on the Enchi Gold Project within 26 months of the closing of the transaction (“Closing”) with C$2.0 million required to be spent within 14 months of Closing. Once Edgewater has completed a total of C$5.0 million in work expenditures on the Project within 26 months, Edgewater will have earned and vested in a 51% interest in Red Back’s ownership of the Project and a joint venture company (“JVCO”) will be formed.

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