23 June 2008Range River Gold (RNG) and NWME sign Letter...

23 June 2008
Range River Gold (RNG) and NWME sign Letter Agreement
• Letter Agreement signed for exploration on RNG’s Indee tenement in a farm-in agreement
• RNG and NWME working together to facilitate an early start to a new exploration programme on the Indee tenements
Range River Gold Limited (RNG) is pleased to announce that in principle terms have now been agreed for Northwest Nonferrous International Investment Company Ltd a 100% owned subsidiary of the Northwest Mining and Geological Exploration Bureau for Nonferrous Metals (NWME) to earn-in to RNG’s Indee Project in Western Australia. RNG and NWME have also agreed in principle terms for co-operation on further projects in Australia.
This announcement follows the 12 May 2008 announcement of the memorandum of understanding for exploration on RNG’s Indee tenements under a proposed farm-in agreement with NWME, The basic terms for the earn-in agreement for the Indee Project are:
1. NWME will earn 49% of the Indee Project by spending AUS$9 million over four years.
2. Following the earn-in period both NWME and RNG will be responsible for development
expenditure in proportion to their shares in the project.
3. RNG and NWME will form a Technical Committee and an Operating Committee to oversee
the exploration programme.
4. RNG will be the manager and entitled to a management fee.
5. NWME will provide technical and other exploration personnel and equipment to facilitate
expedition of the proposed programme.
Similar terms will apply to other projects in Australia.
RNG and NWME have signed a letter agreement agreeing to these in principle terms and will now
proceed to finalising a detailed binding agreement. The detailed agreement is expected to be finalised
by the end of July 2008. The agreement will require the approval of the Chinese Government, as well
as the Foreign Investment Review Board of Australia.
During the period of finalisation, further site visits will be undertaken and the Technical Committee will
meet to determine the operating programme and budget for the remainder of 2008. RNG and NWME are working together to facilitate an early start to a new exploration programme on the Indee tenements.
“We are very pleased to have built a strong relationship with NWME and I am looking forward to working closely with Mr Sun, the Chairman of NWME, and his excellent team to realise the potential of our Indee property and other opportunities that may arise. This is the first and a very important step in implementing Range’s New Beginning Strategy”, the Managing Director of RNG, Rick Watsford said
today.
RMS Watsford
Managing Director