Business

Redhawk, Copperzone enter $1.5m deal

ESTHER MSETEKA, Lusaka
REDHAWK Resources Inc and Copperzone Resources Limited have entered into an agreement to fund four projects in the mining of copper and cobalt at a cost of US$1.5 million.
Redhawk Resources Inc is a Canada-based resource exploration and development company while Copperzone Resources Limited is a private Canadian firm operating in Zambia since 2009.
According to a statement released by Redhawk Resources Inc recently, the two firms have entered into an option agreement [that is between an investor who is seeking to open an options account and his brokerage firm].
They have further announced a non-brokered private placement for up to 15 million units of the company at a price of US$0.07 per unit to raise profits of US$1,050,000.
“The terms of the option agreement entitle Redhawk to earn a 55 percent interest in the projects by making exploration expenditures of US$1,500,000 over a year and paying US$30,000 on the completion of satisfactory due diligence.
“The option agreement remains subject to the completion of satisfactory due diligence in the 30-day period following execution of the option agreement and regulatory approval,” the statement reads.
It says the licences subject to the option agreement in North-Western Province is subject to a prior joint venture between Copperzone and BHP Billiton.
The joint venture included airborne and ground geophysics and core drilling based on a cluster of gravity anomalies.
Commenting on the development, Redhawk Resources Inc executive chairman Stephen Barley said the firm will continue to search for other opportunities in Africa in addition to its joint venture on the Copper Creek project.
Mr Barley said Redhawk’s investor and industry interest in African copper and cobalt has been steadily growing.
“We are excited to have entered into the option agreement with Copperzone and launch our entry into the resource-rich African mineral sector with a focus on African copper and cobalt. We intend to position Redhawk to benefit from this growth,” he said.


Facebook Feed

Ad1