Renforth Announces Agreement to Acquire Interest in Mina Pilar and Positive Due Diligence Resultsadmin
Renforth Announces Agreement to Acquire Interest in Mina Pilar and Positive Due Diligence Results
Toronto, Ontario CANADA, October 22, 2013 /FSC/ – Renforth Resources Inc. (RFR – CNSX),(“Renforth” or the “Company”) is pleased to announce the positive due diligence result from Mina Pilar, where gold values up to 2.6 g/t were obtained from random chip sampling underground. Mina Pilar is located approximately 130 kms. south west of Madrid, in Toledo province of central Spain. Renforth has entered into an agreement to acquire an interest in Mina Pilar within the Alejandrina Investigation Permit, through the acquisition of an interest in Goldtrex S.L., a Spanish company which holds the Alejandrina Investigation Permit. The permit is 40 km2 and hosts a corridor of interest, 3.6 km in length, encompassing gold showings and historic mines, including Mina Pilar.
Mining works at Mina Pilar commenced in the Roman period, from surface, above the historical underground workings as depicted below. During the property visit the “Dos de Mayo” adit was accessible, and the underground workings for several veins visited. Samples were obtained from workings of four of the nine veins underground, as well as a breccia zone intercepted just past the ventilation raise underground.
Of the seven samples taken three returned assays over 1g/t. Specifically the “Ingeniera Vein” assayed 2.6g/t Au chip sampled over approximately 10 inches, the “Catalina Vein” assayed 2.2g/t Au chip sampled over approximately 12 inches and the “La Rica Vein” assayed 1.6g/t Au chip sampled over approximately 25 inches.
Please click on the following link to view the image of the Sieera Jaena site;
Each sample rock was chipped in situ, with the chips caught in a sample bag. The areas chipped consisted of material which remains after the historical mining activities, in the top of the mine. The Mina Pilar is described in the publication BUENASBODAS El oro de los Montes de Toledo, authored by three members of the Grupo Mineralogista de Madrid and publicly available, in Spanish, with an English abstract which states “Native gold is still visible along quartz veins, especially in the “Dos de Mayo” adit (or mining level) and its dumps. Still accessible, both have been sampled by mineral collectors.” Renforth cautions readers that this is not a NI 43-101 compliant publication, instead the publication is used by management as a guide. Renforth has verified that the property hosts gold, though no visible gold was encountered.
The samples selected were obtained at accessible points of the underground mine and bagged and tagged in the mine, by Mr. Norman E. Brewster P.Geo. The sealed samples were personally transported back to Toronto, where the sealed bags were bagged again, with the inclusion of assay tags for the lab, the secondary bags were also securely sealed. The double bagged, sealed and tagged samples were sent to Activation Laboratories where the samples were tested with Fire Assay AA and Total Digestion ICP(TOTAL).
The agreement to acquire Goldtrex S.L. details the following:
1. Renforth will acquire a 51% ownership interest (the “Initial Acquisition”) in Goldtrex S.L. for CAD$50,000, such purchase price to be satisfied and payable in common shares of Renforth at $0.05/share, equalling 1.0 million shares.
2. Renforth will acquire an additional 29% interest in Goldtrex S.L.in accordance with the following schedule:
(i) an additional 4% interest (for a cumulative 55% interest) by incurring expenditures of at least CAD$100,000 on the project and issuing 150,000 shares of Renforth on or before the first anniversary of the Initial Acquisition;
(ii) an additional 10% interest (for a cumulative 65% interest) by incurring expenditures of at least CAD$250,000 on the project and issuing 250,000 shares of Renforth on or before the second anniversary of the initial Acquisition; and
(iii) an additional 15% interest (for a cumulative 80% interest) by incurring expenditures of at least CAD$400,000 on the project and issuing 250,000 shares of Renforth on or before the third anniversary of the initial Acquisition.
3. Upon acquiring an 80% interest in Goldtrex S.L., Renforth will have the option to acquire the remaining 20% interest in exchange for 500,000 shares of Renforth and a 2% net smelter return royalty.
This agreement has been approved by Renforth’s board, but remains subject to any regulatory approval required.
Mr. Norman E. Brewster P.Geo is a qualified person pursuant to the guidelines of National Instrument 43-101 and has reviewed and approved the technical information contained in this press release.
Renforth Resources Inc. is a Toronto-based exploration company with interests in two exploration assets: the previously productive New Alger property, located in the Cadillac Break Mining Camp, Quebec, and the Mink Lake Project, located outside of Red Lake, Ontario, in a setting interpreted to be similar to the adjacent Springpole Mine Project.
For further information please contact:
Renforth Resources Inc.
President and Chief Executive Officer
T: (416) 368.5049 F: (416) 368.3151
No securities regulatory authority has approved or disapproved of the contents of this news release.
To view the press release as a PDF file, please click on the following link:
Source: Renforth Resources Inc. (CNSX: RFR)
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Posted: October 22nd, 2013 under FSCWIRE.