Renforth Resources Inc.

Renforth Resources Inc.

October 18, 2010 09:00 ET

Renforth Fulfills Term of Option Agreement and Enters Into Joint Venture With Spider Resources Inc. and KWG Resources Inc.

TORONTO, ONTARIO--(Marketwire - Oct. 18, 2010) - Renforth Resources Inc. (CNSX:RFR) ("Renforth") or (the "Company") is pleased to announce that it has completed its' 55% earn-in on the Kyle Series of diamondiferous kimberlites in the James Bay Lowlands region of Northern Ontario. The requirements for the earn-in are set out in an option agreement between Renforth and joint venture partners Spider Resources Inc. ("Spider") and KWG Resources Inc. ("KWG"), and include an expenditure of $6,000,000 by Renforth on the optioned properties. As part of the option agreement, KWG and Spider collectively earned a 45% interest in certain massive sulphide targets held by Renforth in the same region. Renforth, Spider and KWG are currently working towards formalizing their relationship in the form of a joint venture agreement.

The Kyle Series of kimberlites encompasses 5 kimberlites which have been proven to be diamondiferous, with varying stages of work completed on each.

"Renforth is pleased to be able to announce the completion of the option agreement on the property that the Company was founded on" states David Danziger, President of Renforth. "The completion of this agreement has been our primary goal as it is the fulfillment of the promise made to shareholders when the Company was established. Since that time the Company faced several challenges which were not foreseen, but I am pleased to be able to announce that it is now completed and Renforth is well positioned in a very exciting exploration story."

Presently Renforth has no immediate short term plans for these properties, due in part to the fact that Spider has been taken over, and in the short term it is not clear what their intentions are with regard to the jointly held property.

Management is in discussions with its' joint venture partners and reviewing various options with regard to these properties and will inform shareholders further as information is available.

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. 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. Renforth intends to continue to explore these high-priority sulphide and kimberlite targets, as well as 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)
    Investor Cubed Inc.
    Neil Simon
    (647) 258-3310 or (888) 258-3323
    (416) 363-7977 (FAX)