TORONTO, ONTARIO--(Marketwire - March 29, 2012) - Greencastle Resources Ltd. (TSX VENTURE:VGN) ("Greencastle") or (the "Company"), is pleased to announce that the Company has entered into an agreement with Rainbow Resources Inc. ("Rainbow") (TSX VENTURE:RBW) for the exploration of Greencastle's Jewel Ridge gold property near Eureka, Nevada, in the heart of a major gold producing district.
Rainbow can earn a 60% interest in the Jewel Ridge Property by paying Greencastle $250,000 cash, issuing 1,500,000 shares of Rainbow and spending $4.5 million over 4 years. On earning 60% interest in the property, Rainbow can elect to increase its interest to 75% by advancing the property to the stage of a bankable feasibility study. A finder's fee may be payable in connection with this transaction.
Jewel Ridge is located on the south end of Nevada's prolific Battle Mountain - Eureka Trend, along strike and contiguous to Barrick Gold's two-million ounce Archimedes / Ruby Hill mine to the north and the advanced-stage Lookout Mountain Project to the south.
Jewel Ridge contains several historic small open-pit gold mines which align along a north-south trending stratigraphic contact of Lower Paleozoic sedimentary rocks as well as several other gold mineralized zones with a variety of structural and lithological controls. One of Rainbow's initial priorities will be to follow-up on encouraging results from Greencastle's previous drilling including 2.1 g/t Au over 39.6 metres (from 94.5 m to 134.1 m) at the old Hamburg Mine workings.
The property consists of 96 unpatented lode mining claims and eleven patented claims covering approximately 1,510 acres.
"We are delighted to enter into this agreement with Rainbow," explained Greencastle CEO Anthony Roodenburg. "They have a strong technical team and an aggressive approach to exploration."
"This transaction and our recent acquisition of three new base metal projects in Ontario (announced March 27, 2012) are part of a larger strategy to unlock value in existing assets while generating new opportunities. This is shaping up to be the busiest year on record for Greencastle. Given our strong balance sheet and cash flow from our Primate oil royalty, Greencastle has more than sufficient funds to carry out current plans."
This news release includes certain "forward looking statements" within the meaning of that phrase under Canadian securities laws. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. Forward-looking statements reflect management's current views with respect to possible future events and conditions and, by their nature, are based on management's beliefs and assumptions and subject to known and unknown risks and uncertainties, both general and specific to the Company. Although the Company believes the expectations expressed in such forward-looking statements are reasonable, such statements are not guarantees of future performance and actual results or developments may differ materially from those in our forward-looking statements. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of commodities, general market conditions, risks inherent in exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital. Additional information regarding the material factors and assumptions that were applied in making these forward looking statements as well as the various risks and uncertainties we face are described in greater detail in the "Risk Factors" section of our annual and interim Management's Discussion and Analysis of our financial results and other continuous disclosure documents and financial statements we file with the Canadian securities regulatory authorities which are available at www.sedar.com. The Company undertakes no obligation to update this forward-looking information except as required by applicable law. The Company relies on litigation protection for forward looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact Information:
Investor Relations
416-367-4571 ext. 233
www.greencastleresources.com