Newcastle Minerals Ltd. has, subject to regulatory acceptance, acquired 25 lode quartz mineral claims located near Underworld Resources’ White Gold property in the Yukon. The claims cover approximately 1,000 hectares and are located about 15 kilometres east of Underworld’s recently announced discovery of 103 metres of 3.4 grams of gold per tonne. 

Newcastle will pay or issue to the vendor, Blair Naughty, $75,000 cash, three million shares of Newcastle and a 3-per-cent net smelter returns royalty. The company may repurchase 1 per cent of the royalty for $1-million. Newcastle also agreed to spend $25,000 to explore the property by June 1, 2010, and $225,000 by Sept. 1, 2010.

In conjunction with this acquisition, Newcastle Minerals has negotiated, subject to regulatory approval, a non-brokered private placement consisting of up to six million units at a price of three cents per unit, to qualified investors.

Each unit will consist of one common share and one warrant. Each warrant will, in turn, entitle the holder to purchase an additional common share for a period of two years following the closing date at a price of seven cents per share during the first 12 months and 10 cents per share thereafter.

The proceeds from the private placement will be used for exploration of the Yukon claims and working capital.

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