VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 6, 2013) - Teuton Resources Corp. ("Teuton") (TSX VENTURE:TUO) (TFE.F) (TEUTF) is pleased to report that it has optioned its Yellow Chris South claims to Redhill Resources Corp. on terms as set out below. The property (see map) is located east of the town of Iskut in the Red Chris region of northwestern British Columbia (northern part of the "Golden Triangle").
The claims lie a few kilometers northeast of the recent discovery hole reported by Colorado Resources on its North Rok property, which ran 242 metres averaging 0.63% copper and 0.85 g/t gold. Colorado is currently drilling a step-out to the discovery hole.
On the Yellow Chris South claims previous work by Teuton has delineated an area of magnetic highs associated with adjacent magnetic lows. Limited soil geochemical sampling has shown values running from 5 to 271 ppm copper. The geophysical setting is similar to that at the North Rok property.
Redhill Resources Corp. is a TSX-V listed company that had $7.5 million worth of working capital as at the end of its last financial reporting period (Nov. 30, 2012). It plans an aggressive program of property wide soil sampling, geological mapping and IP surveying over the Yellow Chris South claims to start immediately. Positive results from such work will lead to a diamond drilling program.
To earn a 50% interest, the option requires Redhill to pay to Teuton $300,000 over four years, with a $75,000 downstroke upon signing. Redhill must also make four share payments to Teuton of 350,000 shares each (the first within five days of regulatory approval). The first year work commitment is $450,000 rising to $4,500,000 in aggregate over the four year term of the option.
Redhill has a second option to earn another 10% interest in the property, bringing its total interest to 60%. To exercise this second option it will have to give Teuton another $200,000 in cash, 200,000 in shares and spend another $2,000,000 on the property.
D. Cremonese, P.Eng., president of Teuton Resources said: "We are delighted to have optioned the Yellow Chris South claims to a well-funded company such as Redhill Resources, and look forward to the immediate onset of exploration work in this very promising area."
The option agreement is subject to regulatory approval
The Qualified Person for the purposes of this news release is D. Cremonese, P.Eng.
"Dino Cremonese, P.Eng."
President, Teuton Resources Corp.
If you would like to be added to Teuton's news distribution list, please send your email address to email@example.com.
This news release includes certain forward-looking statements concerning the future performance of our business, its operations and its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking-statements and we caution against placing undue reliance thereon. Teuton Resources Corp. does have an ongoing obligation to disclose material information, as it becomes available.
To view the map associated with this release, please visit the following link: http://media3.marketwire.com/docs/506ebs1.pdf.