To acquire Redhill's interest, including the right to acquire the remaining 15% interest in the PMLs, in the Nyakagwe Properties, GeoNovus has agreed to pay to Redhill the sum of $1,200,000 in installments over the next 18 months and issue 1,000,000 shares of GeoNovus to Redhill.
GeoNovus has a period of 60 days from the date hereof in which to carry out its due diligence. In addition to GeoNovus being satisfied with the results of its due diligence, the disposition is subject to Redhill and GeoNovus entering into a definitive agreement and acceptance for filing by the TSX Venture Exchange on or before November 30, 2012.
Mike, please tell us in your words, why it was strategic and a good move for GeoNovus to option out the Nyakagwe
property from Redhill Resources?
This prospective group of concessions sits within Tembo’s (TEM) land package. Tembo raised $17 million and came
public this year and are now raising $4 million more to work this property that is located adjacent to African Barrick's
20Moz Bulyanhulu Mine in the prolific Lake Victoria Greenstone belt in Tanzania. They actually thought they owned
this ground and had it on their website with 16 holes plotted for it. It is a great gold region on trend with the 12 million
ounce Bulyanhulu mine (African Barrick). We are currently doing our due diligence with Tanzanian lawyers to assure
all is in good standing.
The company is led by a highly experienced team with a proven history of developing, financing, and operating
mining projects in Africa. The company has commenced its 90,000m drill program on its Tembo Gold Project. All
great news for us! While our due diligence period is until the end of November though we anticipate being done