Renforth Enters Option Agreement to Acquire Mining Claims in Red Lake, Ontario
15 August 2012 - 10:30PM
Marketwired Canada
Renforth Resources Inc. ("Renforth" or the "Company") (CNSX:RFR) announces that
it has entered into an option agreement to acquire a 100% undivided interest in
50 unpatented mining claims situated in the Townships of Shabumeni Lake, Little
Shabumeni Lake, Casummit Lake and Satterly Lake in the District of Red Lake,
Ontario.
To exercise the option, Renforth is required to: (i) issue 250,000 common shares
of Renforth to the optionor over three years (of which 100,000 shares are to be
issued within 10 days of the Company's receipt of regulatory approval for the
issuance of the shares), and (ii) pay $98,000 to the optionor over four years
(of which an initial payment of $20,000 is payable on signing the agreement).
In addition to this Renforth has staked 130 units in the area which join the
Mink Lake Property to the optioned ground, forming one large land block.
"These claims are located within the Birch-Uchi Greenstone belt and the
recognized Swain Lake deformation zone. This area is the confluence of several
granitoid intrusives which have resulted in a complex structural setting,
hosting numerous known gold showings, historic mining activities for several
metals, and ongoing development projects. This is great real estate for Renforth
to be positioned in, along with our staked ground and our Mink Lake project we
hold in excess of 127 km2 in the prolific Red Lake district," states Nicole
Brewster, President and CEO of Renforth.
To view Figure 1, please visit the following link:
http://media3.marketwire.com/docs/rfr0815fig1.jpg.
If Renforth acquires and begins commercial production on the Property, the
optionor retains a production royalty equal to 1.5% of the net smelter returns,
subject to Renforth's right to buy-back half of the royalty (0.75%) for
$750,000.
ABOUT RENFORTH
Renforth Resources Inc. is a Toronto-based exploration company pursuing the
development of the Company's Mink Lake Project in the Red Lake area of
Northwestern Ontario. The Company is also evaluating additional exploration
opportunities on an ongoing basis.
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