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.
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.
No securities regulatory authority has approved or disapproved of the contents of this news release.
Renforth Resources Inc.
President and Chief Executive Officer
(416) 368.3151 (FAX)