COEUR D’ALENE, Idaho--(BUSINESS WIRE)--RockStar Resources, Inc. today announced it has signed an exclusive agreement with Timberline Resources, an advanced-stage exploration company with seven projects in Nevada, Idaho and Montana, to explore a business combination to enhance the value of Timberline’s suite of high quality gold properties.
“We are very pleased to announce yet another exclusive relationship which allows us to explore the combination of Timberline and RockStar to bring the value of RockStar’s team to the high quality gold and silver assets of Timberline Resources,“ said Dennis E. Wheeler, Chairman and Chief Executive Officer of RockStar. “Along with our recent announcement of our intent to acquire Calico Resources USA Corp. and its Grassy Mountain Project, Timberline fits well with our strategy of identifying advanced-stage exploration properties, expertise in permitting, mine optimization, and operational development, to advance quality gold projects through feasibility and toward production. Timberline has a total of seven properties in the states of Nevada, Montana and Idaho, all with large land packages, that we believe provides significant upside to further gold resource development.”
The Timberline properties include its wholly owned Lookout Mountain Project in Nevada, which consists of 378 contiguous claims on 23 square miles and to date has returned very positive exploration results. The Lookout Mountain Projects is located near the Eureka, Nevada, historic and prolific mining district. Other Timberline properties include the Iron Butte Project in Nevada, with 569,000 ounces of reported gold resource and 10 million ounces of silver resource, and a 50% interest in the Butte Highlands Joint Venture in Montana, with an estimated resource of between 200,000 and 250,000 ounces of gold, and where initial production is targeted to commence in 2014.
As part of the initial exclusive relationship, RockStar has agreed to purchase 3.75 million shares of Timberline as a strategic investment in three tranches through February 2014, subject to regulatory approvals.
RockStar Resources, Inc. is a newly-formed privately held company with the stated mission of identifying and brining value to high-quality late-stage exploration precious metals mining projects in need of expertise and financing, and advancing these projects with solid fundamentals toward feasibility and production; all with an unwavering commitment to its projects’ communities and the environment. The RockStar team has a combined 125 years of mining management, operations, geology and environmental and governmental permitting and compliance experience, and has permitted and profitably operated some of the most challenging precious metals projects in the world. The Company is incorporated in Idaho and headquartered in Coeur d’Alene, Idaho.
(1)Resource estimates reported by Timberline Resources Corp. both historical and contained within their National Instrument 43-101 Technical Reports filed on Sedar include Measured and Indicated resources. See Sedar.com for further information regarding the assumptions used in the resource estimates by Timberline’s Qualified Persons.