Revolution Signs Agreement to Sell the Concepción Property To Minera Rio Tinto for US$4,000,000
April 30, 2013
Vancouver, BC, Canada - Revolution Resources Corp. TSX:RV (“Revolution” or the “Company”) is pleased to announce it has entered into an agreement to sell the Concepción property, totaling 117 hectares to Minera Rio Tinto, S.A. DE C.V. (“Minera Rio Tinto”) for US$4,000,000. Concepción is located within Revolution’s 26,000 hectare Montaña de Oro property, in Sonora State, Mexico.
Revolution’s focus in Mexico is gold, silver and copper. Given that the Concepción property is primarily a zinc exploration property, it was deemed a non-core asset for Revolution.
“The sale of the Concepción property to Minera Rio Tinto will provide the Company with non-dilutive capital to advance additional deals within our Mexican project generator model,” states President and CEO Aaron Keay, "We will continue our capital preservation plan in these challenging markets, while focusing our efforts on executing additional joint venture or property sale agreements."
Under the terms of the Agreement, the sale price is payable to Revolution by Minera Rio Tinto as follows:
- a deposit of US$200,000 that has been delivered into escrow and is refundable only in the limited circumstance described below
- US$800,000 at the closing of the sale, which is expected to be 60-90 days from this announcement
- US$1,000,000 nine months after the closing date
- US$1,000,000 twelve months after the closing date
- US$1,000,000 fifteen months after the closing date
Completion of the transaction is subject to completion of the previously announced purchase by Revolution of Lake Shore Gold Corp’s interests in the Mexico property portfolio (see Revolution news release dated January 30th, 2013), which includes the Concepción property, and is also subject to a 60 day due diligence period. The US$200,000 deposit referred to above was paid into escrow on signing, and will be released to Revolution unless the transaction with Lake Shore Gold Corp. does not complete. The Lake Shore Gold transaction is expected to close early in May.
Concepción, totaling 117 hectares, is a replacement massive sulphide/breccia Zn-Cu-Ag-Au system. The mineralized zone, as it has been drill delineated to date, is approximately 200 meters by 100 meters, though offset by faulting. Historical drilling highlights include: 31.16 meters of 6.7% Zn, 0.94% Cu, 51.48g/t Ag, and 0.80g/t Au; 8.18 meters of 11.06% Zn, 0.81% Cu, 20.65g/t Ag, and 0.18g/t Au; and 15.45 meters of 5.96% Zn, 0.49% Cu, 25.49g/t Ag, and 0.54g/t Au.
Revolution Resources Corp. is a TSX-listed exploration company (TSX: RV) based in Vancouver, BC, Canada. The Company's current exploration activities are focused on the historic belts of Mexico and the USA. Revolution is dedicated to the identification and advancement of precious and base metal deposits utilizing a prospect generator model in Mexico, while maintaining 100% ownership of its Champion Hills discovery in the Carolina Slate Belt of the southeastern USA. Further information can be found on the Company’s website at www.revolutionresourcescorp.com
ON BEHALF OF THE BOARD
of Revolution Resources Corp.
President, CEO and Director
For more information please contact:
Manager, Investor Relations
President, CEO and Director
Forward-Looking Statements: Some statements in this news release contain forward-looking information or forward-looking statements for the purposes of applicable securities laws. These statements include, among others, statements with respect to the completion of the sale of the Concepción property (the “Transaction”), the Company’s plans for exploration and development of the Mexican properties, potential mineralization and the use of proceeds from the Transaction. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such risk factors include, among others, failure of the conditions to completion of the Transaction to be satisfied or waived; failure to complete the Transaction, failure to obtain regulatory approvals, the timing and success of future exploration and development activities, exploration and development risks, title matters, inability to obtain any required third party consents, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices and one-time events. In making the forward-looking statements, the Company has applied several material assumptions including, but not limited to, the assumptions that: (1) the conditions to closing of the Transaction will be satisfied or waived; (2) the Transaction will be completed as planned; (3) market fundamentals will result in sustained metals and minerals prices and (4) any additional financing needed will be available on reasonable terms. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.