VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 9, 2011) -
THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES
Hilltown Resources Inc. (the "Company") (CNSX:HLT) is pleased to announce that Hilltown and Tecstones Geologia Ltda of Brazil ("TEC") have closed the acquisition of an option (the "Option") from TEC whereby Hilltown may earn a 100% interest in four mineral claims (the "Claims") comprising 6,286 hectares located in Bahia State, Brazil (the "Claims").
Based on the results of a preliminary due diligence sampling program announced in a news release dated March 3, 2011, which can be viewed at sedar.com, Hilltown decided to proceed with a formal option agreement.
Hilltown can acquire the Claims by (i) incurring expenditure expenditures of US $800,000 in three years: year 1 - $100,000, year 2 - $200,000 and year 3 - $500,000. (ii) paying approximately $2,455 to keep the Claims in good standing to 2012 and (iii) reimbursement of the Owners acquisition and exploration costs to a maximum of approximately $44,550 payable by December 2011.
The Claims are subject to the following royalties which can be purchased by Hilltown.
Iron Ore - 2.5% of net sales proceeds (minus freight costs). The Iron Ore Royalty can be purchased by the payment of either:
-- prior to drilling US $2,000,000, or
-- after drilling an amount equal to US$1.00 per ton of iron ore above 60%
grade iron ore proven resource, with phosphorus levels of less than
Base Metals Royalty: 2% net smelter return which can be purchased by Hilltown at any time, by a payment of U.S. 1 million dollars for each royalty percentage point for an aggregate total of $2,000,000 for the Base Metal royalty.
On behalf of HILLTOWN RESOURCES INC.
Rudy de Jonge, Chief Executive Officer, director
The CNSX has not reviewed and does not accept responsibility for the accuracy or adequacy of this release.