Redhill Resources Corp. (CVE:RHR) said Thursday that it has closed its acquisition of the prospecting license adjoining its Nyakagwe property in Tanzania with Thamani Mines, initially announced in late January.
Under the deal, Redhill will be allowed to acquire a 100 percent interest in the prospecting license, adding 100 hectares to its Nyakagwe project and bringing the total number of hectares to roughly 500, the company said.
The property consists of forty-six primary mining licenses (PMLs) and one prospecting license (NYSE:PL) that is contiguous to the company's PMLs.
The Nyakagwe PMLs and PLs are surrounded entirely by prospecting licenses and applications for such licenses owned and now being explored by Tembo Gold Corp, Redhill said.
The deal signed with Thamani Mines requires Redhill to make a total of C$250,000 in cash payments, issue 1.00 million shares, and invest C$300,000 in exploration in stages over a three year period.
Limited historical exploration was completed on the Nyakagwe property to test for the potential for near surface mineralization.
Large scale artisanal gold mining has been carried out on the project area for more than a decade, however, and continues to be prevalent today, the company said.
Redhill also said it is fully funded, and is planning an extensive exploration program on the property for this year, which will include mapping, sampling, trenching and induced polarization (NYSE:IP).
The aim of the campaign will be to define drill targets for the upcoming exploration season.