Renforth Resources Inc.
CNSX : RFR

Renforth Resources Inc.

October 25, 2010 08:45 ET

Renforth Completes Non Flow-Through Private Placement and Announces Flow-Through Financing

TORONTO, ONTARIO--(Marketwire - Oct. 25, 2010) - Renforth Resources Inc. (CNSX:RFR) ("Renforth" or the "Company") is pleased to announce the closing of a private placement offering for aggregate gross proceeds of $760,000. The Company issued 15,200,000 Units at a price of $0.05 per Unit. Each of these Units is comprised of one common share and one-half common share purchase warrant. Each full warrant entitles the holder to acquire one additional non-flow through common share of the Company at a price of $0.10 per share for a period of 24 months from closing. A finder's fee equal to 8% of the gross proceeds raised, in addition to the issuance of a number of Broker Warrants equal to 8% of the number of Units issued, was paid to qualifying arms length finders totaling $60,800 and 1,216,000 Broker Warrants. Each Broker Warrant entitles the holder to acquire one additional non flow-through common share of the Company at a price of $0.05 for a period of 24 months.

Renforth also announces that it intends to complete a non-brokered private placement offering of up to 6,666,667 Units at a price of $0.075 per Unit for gross proceeds of up to $500,000. Each Unit shall be comprised of one flow-through common share and one-half common share purchase warrant. Each full warrant shall entitle the holder to acquire one flow through common share of the Company at a price of $0.12 per share for 24 months from closing. A finder's fee equal to 8% of the gross proceeds raised, in addition to the issuance of a number of Broker Warrants equal to 8% of the number of Units issued, will be paid to qualifying arms length finders. Each Broker Warrant shall entitle the holder to acquire one additional flow-through common share of the Company at a price of $0.075 for a period of 24 months.

Proceeds from the financings will be allocated towards the planned exploration and drill programs for the Company's projects, mainly a fall drill program at the Company's New Alger gold project in Quebec.

The offerings were and will be made to residents of Canada in reliance upon applicable exemptions from registration and prospectus requirements. The closing of the flow-through private placement remains subject to the receipt of all required regulatory approvals, including the approval of the Canadian National Stock Exchange (CNSX). All securities issued or to be issued pursuant to the offerings are or will be subject to a hold period of four months from the date of closing.

About Renforth

Renforth Resources Inc. is a Toronto-based diamond, base metals and precious metals exploration company with significant concessions in the McFaulds Lake "Ring of Fire" discovery area of north- eastern Ontario as well as Spain. Renforth has five diamondiferous kimberlites referred to as the Kyle kimberlites: two are at the commercial bulk-sampling stage; the remaining three are targeted for specific follow-up drilling and economic evaluation. Additional mineral claims lie between ten and twenty kilometres from Noront Resources Ltd.'s recent base metal discoveries at its Double Eagle Project. The Company also has now acquired the Mina Maria Luisa project located in Southwestern Spain, approximately 30 kilometres from the Aguas Tenidas Mine. Renforth intends to drill targets at Mina Maria Luisa in 2011, and also has significant planned drilling of the New Alger Gold project located in Quebec in late 2010.

No securities regulatory authority has approved or disapproved of the contents of this news release.

Contact Information

  • Renforth Resources Inc.
    David Danziger
    President and Chief Executive Officer
    (416) 368.5049
    (416) 368.3151 (FAX)
    info@renforthresources.com
    or
    Investor Cubed Inc.
    Neil Simon
    (647) 258-3311 or (888) 258-3323
    (416) 363-7977 (FAX)
    nsimon@investor3.ca