Red Pine Enters Agreement for Wawa Gold Project

Red Pine Exploration Inc. (TSXV:RPX) has entered into an assignment and assumption agreement with Augustine Ventures Inc. (CSE:WAW) and Citabar Limited Partnership in which Red Pine can earn up to a 45-percent interest in the Wawa gold project.

Highlights of the assignment and assumption agreement are as follows:

1. Red Pine is required to incur $2.1 million in eligible exploration expenditures by June 30, 2015 in order to earn a 30% interest in the Wawa Gold Project, upon which Augustine and Citabar would then hold 30% and 40% respectively;
2. Red Pine has the right to earn one-half of an additional 15% interest ( or 7.5%) in the Wawa Gold Project by incurring a further $2.0 million in eligible exploration expenditures by June 30, 2016, so long as a total of $4.0 million is spent in the aggregate by Red Pine and Augustine, which could be increased up to the entire 15% interest if all of such additional $4.0 million is incurred by Red Pine;
3. Red Pine also has the right to earn a pro rata interest in Augustine’s existing interests in all mineral properties acquired by Augustine, including any future acquisitions, within an area of influence defined as a 5 kilometer radius from the perimeter of the Wawa Gold Project by satisfying certain criteria;
4. Upon earning a 30% interest in the Wawa Gold Project, Red Pine will be the Manager under the terms of the joint venture agreement, which constitutes part of the Option Agreement, as amended by the Assumption Agreement;

Quentin Yarie, president and COO of Red Pine, stated:

The Wawa Gold Project already contains a significant inferred gold resource and we believe there is potential to expand that resource. Limited exploration has been done on the higher grade vein deposits present on the property and the new interpretation of the geology may lead to both an expanded and new gold discovery. We believe that entering into this agreement with Augustine and Citabar to become part of and further develop the Wawa Gold Project represents an exciting new opportunity for our shareholders.

Click here for the Red Pine Exploration Inc. (TSXV:RPX) press release.