In early 2005, Redstar acquired exclusive rights to the Nevada, Utah, Idaho and California exploration databases of AngloGold-Ashanti, one of the largest international gold-mining companies. For Nevada, the database consists of over 1,300 project, property-examination and mineral-occurrence files as well as extensive digital geochemical and geophysical datasets; there are approximately 1,600 evaluation files for the other states. This information has led Redstar to the identification of a number of gold-exploration targets which have become projects, including Oasis, Richmond Summit, Cooks Creek and North Bullfrog. By completing expenditures of C$3 million on its U.S. projects by early 2008, Redstar completed its purchase of the database. Prior to that time, AngloGold-Ashanti maintained a one-time back-in right once C$750,000 had been spent on a given project. This back-in right was declined at the Painted Hills and North Bullfrog projects and converted to a 1% to 2% net-smelter royalty at other projects acquired up to early 2008 (e.g., Eagle Basin, Richmond Summit, Cooks Creek, Root Spring, Oasis and Dry Gulch). Since Redstar's purchase of the database in early 2008, new projects generated are free of any back-in right or NSR. Along with Painted Hills, these unencumbered projects include Seven Devils, Baker Spring, Rosebush, Queens and Opal Hill; North Bullfrog has been sold. Over 80% of the $3 million had been spent by Redstar's partners, giving Redstar shareholders exposure to numerous exploration projects at minimal expense. The acquisition of the database provides a competitive advantage to Redstar by providing the ability to continuously develop a pipeline of Nevada projects. By removing the back-in held by AngloGold Ashanti, Redstar has even more flexibility in the types of properties it might acquire and in potential agreements with partners.
