Rimfire Announces Nevada Exploration Alliance with Newmont
VANCOUVER, British Columbia--(BUSINESS WIRE)--Dec. 15, 2004--David Caulfield, President and CEO of Rimfire Minerals Corporation (TSX VENTURE:RFM) is pleased to announce the creation of an exploration alliance with Newmont Capital Limited, a subsidiary of Newmont Mining Corporation (NYSE:NEM) targeting a defined project area of 3060 square miles (7920 sq. km) in Nevada's Walker Lane Mineral Belt.
"The invitation to work in the State of Nevada with Newmont, one of the world's premier gold companies, is very exciting," said David Caulfield. "The agreement capitalizes on the complementary assets and technical skills of both companies. We look forward to finding new gold projects for our shareholders and also creating opportunities for Newmont by unlocking the value of their extensive Nevada database."
Rimfire will have access to Newmont's geological, geochemical and geophysical databases for the defined area. Newmont has agreed to provide dedicated technical assistance and use of its proprietary target compilation "neural network" technology.
According to M. Stephen Enders, Vice President Worldwide Exploration for Newmont, "Greenfield exploration is the foundation of our industry, and top-quality personnel are critical to that process. I am confident that Rimfire has the creative geoscience talent to efficiently maximize the value of our exploration opportunities."
Rimfire has committed to making USD$300,000 in expenditures within the project area during the term of the two year agreement. Rimfire may, at its discretion, acquire one or more properties within the project area boundaries in which to conduct further exploration work. On Rimfire's acquisition of any property interest, Newmont will be granted a Net Smelter Return Royalty of 2.0% to 3.0% on a sliding scale based on the price of gold.
Newmont will have a one-time right to enter a 50:50 Joint Venture upon Rimfire expenditures of USD$300,000 on an acquired property. When this right is exercised, Newmont will relinquish the Net Smelter Return Royalty, manage the Joint Venture, and solely fund the next USD$1,000,000 in exploration to earn its 50% interest.
Rimfire Minerals Corporation is an aggressive, well-financed mineral exploration company with a portfolio of highly prospective gold and silver properties in western North America. Partners include Newmont Mining Corporation, AngloGold (U.S.A.) Exploration Inc., Northgate Minerals Corporation, Cangold Limited, and Serengeti Resources Inc.
On behalf of Rimfire Minerals Corporation
David A. Caulfield, President
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Rimfire Minerals Corporation (TSX VENTURE:RFM)
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