July 9, 2012, Vancouver, BC -- Heatherdale Resources Ltd. ("Heatherdale" or the "Company") (TSX Venture: HTR) announces that it has arranged a $4.4 million private placement financing with Rathdowney Resources Ltd. ("Rathdowney"), whereby Heatherdale will issue 22,000,000 common shares to Rathdowney at a price of $0.20 per share. The issuance is subject to final approval by the TSX Venture Exchange.
Rathdowney is a public company that has certain directors in common with Heatherdale. On completion of the financing, Rathdowney will own approximately 18.4% of Heatherdale's shares. Under the terms of the transaction, Rathdowney will also have the right to nominate two individuals for election to Heatherdale's board of directors for so long as it retains at least a 10% interest in Heatherdale.
The proceeds will be used to advance drilling and engineering studies at the Niblack Project and for general corporate and working capital purposes.
Heatherdale Resources Ltd. is a Vancouver-based exploration and development company focused on advancing two Alaska-based assets, the 100%-owned high-grade mine development opportunity at the Niblack copper-gold-zinc-silver project and the mid-stage Delta copper-lead-zinc-gold-silver project in which it holds a 60% interest.
Heatherdale has undertaken various corporate transactions and active exploration programs over the past three years, which it believes have added significant value to both projects. Earlier this year, Heatherdale increased its interest in the Niblack Project to 100%. It has also conducted extensive drilling at site, outlining significant mineral resources in two of the six known deposits which laid the foundation for engineering and scoping studies. The Company's 2012 program is designed to further expand the mineral resources to take the project into the pre-feasibility stage by the end of the year.
At Delta, Heatherdale initiated surface evaluation and drilling in 2011, enhancing the resource potential at the Mid Zone and the overall potential of the project.
For additional details on Heatherdale, please visit the Company's website at www.heatherdaleresources.com or contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114.
On behalf of the Board of Directors
President and Chief Executive Officer