TORONTO, ONTARIO--(Marketwire - Jan. 29, 2013) - Renforth Resources Inc. ("Renforth" or the "Company") (CNSX:RFR) announces that it has entered into an agreement (the "Purchase Agreement") with Cadillac Ventures Inc. ("Cadillac") to acquire a 100% interest in Cadillac's New Alger Property, located in Cadillac Township, Québec.
The Purchase Agreement provides for the payment to Cadillac of the following: (i) $20,000 cash and 2,000,000 common shares of Renforth at the time of signing the Agreement, (ii) $210,000 cash by June 15, 2013, and (iii) $250,000 cash by November 15, 2013. Upon satisfaction of the foregoing conditions, Renforth will acquire a 100% interest in the property, subject to an existing 1% net smelter return royalty and Cadillac will retain an additional 1% net smelter return royalty.
The New Alger Property was historically productive intermittently between 1929 and 1948. Historical and Québec government records indicate that the minimum production was 21,740 oz. of gold from 175,055 tons of mined rock representing an average grade of 4.22 g/t Au.
"Renforth is pleased to be in the position to be able to own 100% of the New Alger Property, and bring current exploration and technical methodology to bear on a property that has sat largely idle, for a long period of time. We are excited to be in the Cadillac Break, and look forward to commencing an exploration program," states Nicole Brewster, President and CEO of Renforth.
The Purchase Agreement terminates the previous agreement between the parties under which Renforth had an option to acquire a 51% joint venture interest in the New Alger Property.
Renforth Resources Inc. is a Toronto-based exploration company pursuing the development of the Company's Mink Lake Project in the Red Lake area of Northwestern Ontario. The Company is also evaluating additional exploration opportunities on an ongoing basis.
No securities regulatory authority has approved or disapproved of the contents of this news release.