Renforth Resources Inc.
CNSX : RFR

Renforth Resources Inc.

June 14, 2012 14:30 ET

Renforth Resources: President Update to Shareholders

TORONTO, ONTARIO--(Marketwire - June 14, 2012) - Renforth Resources Inc. ("Renforth" or the "Company") (CNSX:RFR) wishes to update its shareholders on operations over the past two months. Nicole Brewster, President, CEO and Director of Renforth states:

"Dear Renforth Shareholder:

I am writing this note after two months as your new President and Chief Executive Officer, in order to provide an update on the recent changes and developments regarding our Company.

  1. The Board has changed, and is proposed to change again at the Company's annual general and special meeting next week. Management has put forward its nominees for election as directors, and, assuming shareholders elect all of management's nominees, the Company will have a Board with technical and financial depth and expertise, focused on advancing Renforth.
  2. One of the items of business to be put before shareholders at the meeting is a share consolidation. As a shareholder, I am never happy to have shares consolidated, but, speaking as your President, in order to market Renforth to sources of financing, the capitalization of the Company needs to be in line with the asset base of the Company.
  3. The Company raised a small amount of operating capital by the sale of 3 claims in the Ring of Fire. These were massive sulphide target claims, upon which initial exploration did not find any technically compelling reason to continue with exploration and were deemed non-material to the Company. The sale of these claims, which Renforth would not be advancing, generated enough capital to discharge existing debts such as legal and accounting, associated with the operation of the Company. The residual amount will be used for working capital.
  4. Another item of business to be put before shareholders at the upcoming meeting is the settlement of remaining outstanding debt due to Directors and related companies for historic services rendered through the issuance of common shares of the Company. The discharge of these amounts will "clean up" the books for Renforth. All of these issued shares will be issued at a pre-consolidation price of $0.05, and be subject to the consolidation.
  5. Registration of the Company's 55% earned interest in the five Kyle properties located in the James Bay lowlands of Northern Ontario (earned pursuant to exploration carried out under the 2006 option agreement) has not yet been completed. The Company has initiated discussions with the registered holder to have the interest registered in the
    Company's name. Once registration has been effected, Renforth will pursue the formation of a joint venture with all of the involved parties.
  6. With respect to the Company's option to acquire a 51% interest in the New Alger Property in Quebec from Cadillac Ventures Inc. through the payment of cash and shares to Cadillac and by funding exploration programs, Renforth is currently offside on its covenants under such agreement, as it has not had sufficient capital available to meet the exploration and payment requirements. Renforth will be attempting to negotiate either an extension of the dates in the existing agreement or a new agreement. Once resolved this matter will be further updated.
  7. The Mink Lake Project, located outside of Red Lake NW Ontario, has had a small field program, consisting of some ground geophysics (which had to be halted early due to the unusually early spring melt conditions in northwestern Ontario) and a small reconnaissance and sampling program on the property. This campaign was successful in locating and sampling quartz veining at the Finn showing, which samples have been submitted for assaying. The results will be released as soon as available.
  8. Renforth expects to approach the capital markets in the near future, as further funding is needed in order to carry out further exploration on the Mink Lake, or any other, property.
  9. Efforts are ongoing to evaluate other projects. In the months I have been your President and CEO, we have considered, but decided not to pursue, two other project options because we did not feel such projects would add value to Renforth. As additional opportunities present themselves, we will duly consider them.

This letter is intended to communicate the current state of our Company, and bring shareholders an understanding of what we are trying to build upon. As there are further developments regarding any of the points detailed above, we will update shareholders accordingly. I am fully committed to adding shareholder value to Renforth. I have spent much of the first two months familiarizing myself with the assets of the Company and I am excited to begin active exploration and fundraising within Renforth."

Forward-Looking Statements

This press release includes certain forward-looking statements within the meaning of Canadian securities laws including with respect to registration of the Company's interest in the Kyle properties and the Company's expectation to access the capital markets, that are based on expectations, estimates and projections as of the date of this press release. There can be no assurance that such statements will prove accurate, and actual results and developments are likely to differ, in some case materially, from those expressed or implied by the forward-looking statements contained in this press release. Readers of this press release are cautioned not to place undue reliance on any such forward-looking statements.

Forward-looking statements contained in this press release are based on a number of assumptions that may prove to be incorrect, including, but not limited to: timely implementation of anticipated drilling and exploration programs; the successful completion of new development projects, planned expansions or other projects within the timelines anticipated and at anticipated production levels; the accuracy of reserve and resource estimates, grades, mine life and cash cost estimates; whether mineral resources can be developed; title to mineral properties; financing requirements, general market conditions, and the uncertainty of access to additional capital; changes in the world-wide price of mineral commodities; general economic conditions; and changes in laws, rules and regulations applicable to the Company. In addition to being subject to a number of assumptions, forward-looking statements in this press release involve known and unknown risks, uncertainties and other factors that may cause actual results and developments to be materially different from those expressed or implied by such forward-looking statements. The Company has no intention or obligation to update the forward-looking statements contained in this press release.

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

Contact Information

  • Renforth Resources Inc.
    Nicole Brewster
    President and Chief Executive Officer
    (416) 368.5049
    (416) 368.3151 (FAX)
    info@renforthresources.com