Renforth Resources Inc. (CNSX:RFR) has announced the acquisition rights to acquire a 100% interest in the Mina Maria Luisa project located in Southwestern Spain, approximately 30 kilometres from the Aguas Tenidas Mine.
The Property project includes the past-producing Maria Luisa mine, which is situated in the Ossa Morena Zone of the Northern part of Huelva province in Spain, approximately 117 kilometres north of Seville, alongside the main highway between the towns of Huelva and Badajoz. The Property consists of a 24 square kilometres land package, including the old plant, historic tailings dumps and an open pit remaining from historic mining activities. In addition the project includes a valid water license.
The mined out area consists of two distinct zones which are connected underground, the Corta zone and the Levante zone. The Corta zone was mined initially as an open pit and later as an underground, whereas the Levante zone was mined strictly as an underground project. There is also a large unexplored soil geochemical anomaly on the property.
Renforth has acquired an initial 5% ownership interest in Promotora Minera del Sur, SL ("Promotora"), a corporation which owns the Property, along with the right to explore the Property and the option to purchase the balance of the outstanding shares of the Promotora. Additional terms of the agreement are:
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During a 5 year period Renforth has the right to rent the Property from Promotora for annual payments of 42,000 Euros, for a total of 210,000 Euros over the complete 5 year term.
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During the 5 year rental term Renforth has an option to acquire the remaining 95% of Promotora in exchange for a payment of 2,400,000 Euros.
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Renforth has the right to terminate this agreement at any time.
Management of the Company believes that the term of the agreement provides Renforth with sufficient time to conduct a prudent level of legal and technical due diligence on the Property. In addition, if Renforth elects to purchase the balance of Promotora, after proving up the value of the Property through a drilling program, the Company will become the sole owner of the Property, not subject to any royalties or concessions.
David Danziger, President of Renforth, states "We are very excited that our technical adviser, Norman Brewster was able to bring this project to our attention. We believe that this is an extremely attractive exploration project for Renforth in an area that is very familiar to our team. We are looking forward to a robust drill program in 2011 pending the raising of adequate capital."
Mr. Norman Brewster, P. Geo., a Director of the Company and a "qualified person" pursuant to NI 43-101 has reviewed and approved the technical information in this press release on behalf of the Company.
Source: Renforth Resources Inc.