Redhill acquires 100% of Gullewa project from Sherwin Iron

Redhill Resources (CVE:RHR) announced Wednesday it has acquired a 100% interest in the Gullewa gold project in Western Australia from Sherwin Iron.
Under the terms of the transaction, Mutiny Gold (ASX:MYG), Redhill's joint venture partner in the Gullewa property, paid Sherwin Iron AUD $4.0 million on behalf of Redhill.
This payment is in line with Redhill's agreement with Mutiny, whereby Mutiny has the opportunity to earn a 70% interest in the Gullewa property, by making a total of AUD $9.0 million in payments, plus 70% of replacement bonds to Redhill.
In addition to the $4 million payment to Sherwin, along with a previous payment of AUD $3.0 million, also paid by Mutiny to Sherwin, Mutiny must still pay Redhill the remaining AUD $2.0 million on or before October 31, 2011.
After this final payment, and the transfer of the 70% interest in the property to Mutiny, Redhill may relinquish its remaining 30% interest in the gold mine to Mutiny for another AUD $4.0 million.
Redhill will retain a 10% net profit interest in the property on all future production.
Gullewa is a 550 square kilometre property located 450 kilometres north of Perth.
In June, Mutiny extended the main Deflector deposit at Gullewa, which currently hosts resources measuring 1.7 million tonnes grading 4.18 g/t gold, 6.87 g/t silver and 1.03% copper in the measured and indicated category, and 1.6 million tonnes grading 6.5 g/t gold, 3.41 g/t silver and 0.48% copper in the inferred category.
An update to the resource for the project, which now extends over 850 metres, is expected at the end of the current reverse circulation and diamond drill program.
The news of the 100% acquisition sent Redhill's stock on the TSX Venture Exchange up 9.09% as of 9:32 am EDT, to trade at $0.06 per share.