CALGARY, ALBERTA--(Marketwired - June 3, 2014) - Rainmaker Resources Ltd. ("Rainmaker") (TSX VENTURE:RMG) is pleased to announce that the first phase of field work on its Peace River option will commence on Friday June 5, 2014. Rainmaker has entered into a Purchase Option Agreement with Zimtu Capital Corp. and 877384 Alberta Ltd to acquire 100% of four metallic and industrial minerals permits in northwestern Alberta, totaling approximately 24,363 hectares. The permits have the potential to host deposits of silica sand suitable for hydraulic fracturing, and are immediately adjacent to a current producer.
This first phase of testing will consist of mapping and sampling sandstone outcrops on the property, in order to prioritize targets for the next phase of work. The field program will be carried out by Dahrouge Geological Consulting of Edmonton, Alberta.
Peace River Option Agreement:
The terms of the acquisition are:
- $10,000 on signing the LOI;
- Issuance of 750,000 common shares on TSX-V acceptance of the agreement;
- $10,000 on completion of a successful exploration program on or before September 15, 2014;
- Issuance of 750,000 common shares on completion of a successful exploration program on or before September 15, 2014;
- The Vendors retain a 2% royalty on production, 1% of which can be purchased for $1,000,000.
Rick Patmore, President and CEO of Rainmaker commented: "It is very exciting for the Rainmaker management and shareholders that this project is finally under way. The potential to develop an economic resource on this property is considered to be excellent. This is the first project under our newly branded company; Rainmaker Resources Ltd. and the potential results could be stellar. We are right next door to a frac sand producing property that has proven there is a significant amount of quality sand in the area. We are targeting projects which have the potential to produce a minimum of 1,000,000 tonnes per year of frac sand, with at least a 20-year mine life."
Peace River project:
The property is located north of the community of Peace River, adjacent to the Peace River Frac Sand Quarry, which is owned and operated by Canadian Silica Industries. The Quarry extends for approximately 40 km along the Peace River, straddling both the East and West banks where the target unit is exposed. Within the region, the Lower Cretaceous Paddy Member of the Peace River Formation is currently mined for frac sand. The Paddy Member is a friable sand unit representing a shoreline facies deposited in a fluvial environment, with a thickness up to 16.5 m (7.7 m average). The sand grains are almost entirely colorless quartz and beds are dominantly uncemented, which is ideal as a frac sand proppant in hydraulic fracturing.
The Peace River Frac Sand Quarry reportedly has a total annual capacity of 500,000 tonnes of silica sand. Rainmaker is encouraged by this acquisition given its proximity to infrastructure such as rail and roads, and location near the community of Peace River. Additionally, it is located in close proximity to the Horn River, Montney, and Cardium basins, and is central to the Frac Sand market within northwestern Alberta.
High priority exploration targets have been identified along the river banks from historic reports and maps. Rainmaker is commencing exploration on the property with an extensive channel sampling program. Sample results will be used in conjunction with historic data and public information such as well logs, reports, drill core and cuttings, to develop a follow-up drilling program with the objective of identifying locations with the best combination of quality, mesh size distribution, thickness, tonnage and accessibility.
Chris M. Healey, P.Geo., Director and Geological Consultant, Rainmaker, is the qualified person responsible for the technical content of this release.
On behalf of the Board of Directors
Rick Patmore, President and CEO
Rainmaker Resources Ltd.
The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release."
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release. WARNING: The Company relies on litigation protection for `forward looking" statements. Actual results could differ materially from those described in the news release as a result of numerous factors, some of which are outside the control of the Company. This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act') or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.