VANCOUVER, British Columbia, March 21, 2018 (GLOBE NEWSWIRE) — Red Eagle Exploration Limited (TSX-V:XR) (“XR”) owns 100% of the Vetas Gold Project in Santander, Colombia. During 2014, the Ministry of Environment set forth the limits of the Paramo, a high altitude wetland where mining is prohibited. This delineation included a portion of the Vetas Gold Project within the Paramo. XR has been in amicable discussions over the last year with the Ministry of Commerce and the Agency for the Defense of the State to come to an agreement on a reimbursement of up to C $40 million in costs incurred on the portion delineated within the Paramo.
XR has filed an application for arbitration under the Canada-Colombia Free Trade Agreement (“FTA”) to preserve XR’s rights under the FTA allowing the current discussions between the government and XR to continue.
About Red Eagle Exploration
XR is a precious metals exploration and development corporation majority owned by gold producer Red Eagle Mining. XR has an experienced exploration and mine development team focused on building shareholder value through acquiring and developing high grade gold and silver projects in Colombia. XR owns 100% of the Vetas Gold, California Gold and Santa Ana Silver Projects, which consist of numerous historic and existing mines and where exploration is underway to delineate high-grade vein resources exploitable by modern underground mining.
XR and majority owner Red Eagle Mining have entered into a definitive amalgamation agreement pursuant to which Red Eagle Mining has agreed to acquire all of the issued and outstanding shares of XR not already owned. The amalgamation will complete Red Eagle Mining’s acquisition of XR (formerly known as CB Gold), simplify the holding structure and reduce costs. Implementation of the amalgamation is subject to the approval by a majority of the minority XR shareholders at a special meeting to be held on April 5, 2018.
For further information, please contact Ian Slater, Chief Executive Officer or:
Vice President Corporate Development
Red Eagle Mining Corporation
Suite 2348 – 666 Burrard Street
Vancouver, BC, V6C 2X8
+1 778 372 2558
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