Red Metal Resources Announces Agreement to Acquire Further Claims forFarellon Property
May 27, 2014
THUNDER BAY, ON and VALLENAR, CHILE, May 27th, 2014 – Red Metal Resources
Ltd. (OTCQB:RMES), a mineral exploration company with copper-gold assets in Chile, is
pleased to announce that its Chilean subsidiary, Minera Polymet Limitada, (“Polymet”) has
signed a memorandum of understanding to acquire the option to earn 100% interest in two
mining concessions contiguous to our Farellon Property. The two claims total 486 hectares
and will add a further approximately 5 kilometres of strike length of veins along the same
trend as the previously drilled vein zone on our Farellon Property.
Polymet may acquire 100% of the mining concessions by paying a total of US$300,000 in a
mixture of shares and cash over four years. The vendor will retain a 1.5% NSR on the two
claims and Polymet will have the right to purchase 100% of the NSR for a one-time payment
of US$1,500,000 an any time after acquiring 100% of the property.
The payment schedule for the option agreement is as follows:
1. The amount of 50,000 USD together or the equivalent in common shares of Red Metal
Resources upon execution of the Option Agreement;
2. The amount of 50,000 USD together or the equivalent in common shares of Red Metal
Resources within the term of 12 months counted as of the date of execution of the
Option Agreement;
3. The amount of 50,000 USD together or the equivalent in common shares of Red Metal
Resources within the term of 24 months counted as of the date of execution of the
Option Agreement;
4. The amount of 50,000 USD together or the equivalent in common shares of Red Metal
Resources within the term of 36 months counted as of the date of execution of the
Option Agreement;
5. The amount of 100,000 USD within the term of 48 months counted as of the date of
execution of the Option Agreement.
The Farellon property presently consists of seven mining and exploration concessions
totaling 1,053 hectares, the new property will consiste of nine mining and exploration
concessions totaling 1,539 in the Carrizal Alto mining district located approximately 75
kilometers northwest of the city of Vallenar, 150 kilometers south of Copiapo and 20
kilometers west of the Pan American Highway. The property is easily accessible year round
by dirt roads that crisscross the property and is located close to power, water and a major
urban centre, Copiapo, with a readily available mining workforce
Caitlin Jeffs, P.Geo., President & CEO of Red Metal stated, “We are very excited to be
adding this key piece of ground to our Farellon Project and believe the potential of the
property is equal to the previously explored ground on the Farellon Property .”
Caitlin Jeffs, P. Geo., President & CEO of Red Metal, the project’s Qualified Person as
defined in NI 43-101, has reviewed and approved the contents of this news release.
About Red Metal Resources Ltd.
Red Metal Resources is a mineral exploration company focused on aggressive growth
through acquiring, exploring and developing copper-gold assets in Chile. Our projects are
located in the prolific Candelaria iron oxide copper-gold (IOCG) belt of Chile’s coastal
Cordillera, host to Freeport-McMoRan’s Candelaria Mine and Anglo American’s Mantoverde
Mine. Red Metal is a fully reporting US public company quoted on the OTCQB under the
symbol RMES. For more information, visit www.redmetalresources.com.
Except for the statements of historical fact, the information contained herein is of a forwardlooking
nature. Such forward-looking information involves known and unknown risks,
uncertainties and other factors that may cause the actual results, performance or
achievement of the company to be materially different from any future results, performance
or achievements expressed or implied by statements containing forward-looking information.
Accordingly, you should not place undue reliance on statements containing forward looking
information. The U.S. Securities and Exchange Commission permits mining companies, in
their filings with the SEC, to disclose only those mineral deposits that a company can
economically and legally extract or produce. We may use certain terms in our press
releases, such as "measured," "indicated," and "inferred" resources, which the SEC
guidelines generally prohibit companies from including in their filings with the SEC. Investors
are urged to consider closely the disclosure in our Form 10-K, which may be obtained from
us, or from the SEC website.
Contact:
Red Metal Resources Ltd.
Caitlin Jeffs, P.Geo, CEO
807.345.7384
caitlin.jeffs@redmetalresources.com
www.redmetalresources.com
Or
Red Metal Resources Ltd.
Scott Rose
Corporate Communications
T: 1.866.907.5403