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October 13, 2022 – TheNewswire - Renforth Resources Inc. (CSE:RFR) (OTC:RFHRF)(FSE:9RR) (“Renforth” or the"Company") is announcing a non-brokered private placement(the "Offering") for gross proceeds of up to C$1,000,000from the sale of any combination of non-flow-through units of theCompany (each, a “Unit”) at a price of C$0.035 per Unit andflow-through units of the Company (each, a “FT Unit”, andcollectively with the Units, the “Offered Securities”) at aprice of C$0.04 per FT Unit. Red Cloud Securities Inc. will be actingas a finder for the Offering on behalf of the Company.
Each Unit will consist of one common share of theCompany (each, a “Common Share”) and one common share purchasewarrant (each whole warrant, a “Warrant”). Each FT Unit willconsist of one Common Share to be issued as a “flow-through share”within the meaning of the Income Tax Act (Canada) (each, a “FTShare”) and one half of one Warrant. Each Warrant will entitle theholder thereof to purchase one Common Share at a price of C$0.06 for aperiod of 24 months following the distribution date.
The Company intends to use the net proceeds of theOffering to fund the Company’s ongoing exploration program atSurimeau, expected to include drilling, as well as for working capitaland general corporate purposes. Permits have been applied for and areexpected to be approved imminently. Proceeds from the sale of FTShares will be used to incur "Canadian exploration expenses"as defined in subsection 66.1(6) of the Income Tax Act and "flowthrough mining expenditures" as defined in subsection 127(9) ofthe Income Tax Act. Such proceeds will be renounced to the subscriberswith an effective date not later than December 31, 2022, in theaggregate amount of not less than the total amount of gross proceedsraised from the issue of FT Shares.
The closing of the Offering will be subject to certainconditions including, but not limited to, receipt of all necessaryapprovals including the approval of the Canadian Securities Exchange.The Common Shares and FT Shares issuable from the Offering will have ahold period ending on the day that is four months and one dayfollowing its distribution date.
This news release does notconstitute an offer to sell or a solicitation of an offer to buy anyof the securities in the United States of America. The securities havenot been and will not be registered under the United States SecuritiesAct of 1933 (the “1933 Act”) or any state securities laws and maynot be offered or sold within the United States or to U.S. Persons (asdefined in the 1933 Act) unless registered under the 1933 Act andapplicable state securities laws, or an exemption from suchregistration is available.
For further information please contact:
Renforth Resources Inc.
Nicole Brewster
President and Chief Executive Officer
C:416-818-1393
E: nicole@renforthresources.com
#Unit 1B – 955 Brock Road, Pickering ON L1W2X9
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Renforth is focused on Quebec's newest battery metalsdistrict, our wholly owned ~330 km2 Surimeau District Property, whichhosts several known areas of polymetallic "battery metals" mineralization, each with variouslevels of exploration, as well as a significant amount of unexploredground. Victoria West has been drilled over a strike length of 2.2km,within a 5km long mineralized structure, proving nickel, copper, zincand cobalt mineralization, in the western end of a 20km magneticanomaly. The Huston target, during initial reconnaissance, resulted ina grab sample grading 1.9% Ni, 1.38% Cu, 1170 ppm Co and 4 g/t Ag.Additionally, the Lalonde, Surimeau and Colonie Targets are allpolymetallic mineralized occurrences which, along with various goldshowings, comprise the areas of potential of this NSR freeproperty.
In addition to the Surimeau District battery metalsproperty Renforth wholly owns the Parbec Gold deposit, a surface golddeposit contiguous to the Canadian Malartic Mine property in Malartic,Quebec. In 2020/21, Renforth completed 15,569m of drilling whichsuccessfully twinned certain historic holes, filled in gaps in theresource model with newly discovered gold mineralization and extendedmineralization deeper. Based upon the success of this significantdrill program the Company considers the spring 2020 MRE, with aresource estimate of 104,000 indicated ounces of gold at a grade of1.78 g/t Au and 177,000 inferred ounces of gold at a grade of 1.78 g/tAu to be out of date. With the new data gained Renforth will undertaketo complete the first ever structural study of the mineralization atParbec, as well as additional total metallic assay work in order tobetter contextualize the nugget effect on the goldmineralization.
Renforth also holds the Nixon-Bartleman property, westof Timmins Ontario, with gold present on surface over a strike lengthof ~500m.
No securities regulatory authorityhas approved or disapproved of the contents of this newsrelease.
Forward-lookingStatements
This news release containsforward-looking statements and information under applicable securitieslaws. All statements, other than statements of historical fact, areforward looking. Forward-looking statements are frequently identifiedby such words as ‘may’, ‘will’, ‘plan’, ‘expect’,‘believe’, ‘anticipate’, ‘estimate’, ‘intend’ andsimilar words referring to future events and results. Such statementsand information are based on the current opinions and expectations ofmanagement. All forward-looking information is inherently uncertainand subject to a variety of assumptions, risks and uncertainties,including the speculative nature of mineral exploration anddevelopment, fluctuating commodity prices, the risks of obtainingnecessary approvals, licenses and permits and the availability offinancing, as described in more detail in the Company’s securitiesfilings available at www.sedar.com. Actual events or results maydiffer materially from those projected in the forward-lookingstatements and the reader is cautioned against placing undue reliancethereon. Forward-looking information speaks only as of the date onwhich it is provided and the Company assumes no obligation to reviseor update these forward-looking statements except as required byapplicable law.
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