[Source: www.miningweekly.com]RNI signs on to Horseshoe Lights...

[Source: www.miningweekly.com]

RNI signs on to Horseshoe Lights East
By: Esmarie Swanepoel
20th August 2012

PERTH (miningweekly.com) - Emerging gold miner Resource and Investment (RNI) would earn a 51% interest in fellow listed Horseshoe Metals’ Horseshoe Lights East project, in Western Australia.

Subject to various conditions, RNI would pay the vendor some A$175 000 in script for an option to earn a majority shareholding in the project. The company would then have a two-year period to exercise that option.

Under the agreement, RNI would have to sole fund A$200 000 in exploration on the Horseshoe Lights East project during the first year of the option, and a further A$300 000 in the second year.

If the option is exercised, RNI would issue the vendor with a further A$175 000 in script, and would acquire the 51% interest in the project through a joint venture (JV) with Horseshoe Metals.

Under the JV, RNI would be responsible for sole funding the project up to a decision to mine, at which stage the vendor would become liable for its share of the project expenses. At this stage, Horseshoe Metals could also elect to sell its interest in the project to RNI for a cash price and a 1.5% net smelter royalty.

The Horseshoe Lights East project comprises a single mining lease located immediately east of the historic Horseshoe Lights volcanagenic massive sulphide copper/gold project owned by Horseshoe Metals.

Ends.
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