Rainbow Resources Announces Entering into Letter of Intent to Acquire Braveheart Resources Canada Inc.
TORONTO, ONTARIO, September 7, 2011 -- Rainbow Resources Inc. (TSX VENTURE:RBW) ("Rainbow" or the "Company") announces that it has entered into a letter of intent to acquire Braveheart Resources Canada Inc. ("Braveheart"), a private company incorporated under the laws of Alberta. Braveheart's main asset is its 100% interest in the Riverside claims near Duncan Lake in southeastern British Colombia. The property is comprised of eight cell claims covering a total of 3,883 hectares which includes nine Crown Granted Mineral Claims (123.08 hectares). Previous exploration started in 1918 and over the years has included the sampling and mapping of the main mineralized structure scattered along a reported 1600m length and some limited tunneling along and in search of silver and lead mineralization reported to occur on the property.
The main mineralized zone on the property is variously reported to be a silicified sediment or silicified sill cutting Paleozoic schists and dipping shallowly to the east into the mountain side at approximately 22 degrees. Available historic data is limited but does indicate the presence of quartz rich material varying from about 0.5m to as much as 5m in thickness containing negligible to nearly massive galena and containing higher silver values in association with the areas of stronger galena mineralization. Only a very limited amount of assay data is available on the property with some of the more recent sampling in 2008 reporting historic lead values in the better mineralized areas in the range of 40- 60% lead and 15-25 ounces of silver per ton. Importantly these historic 'grab' samples were not taken by representatives of the Company and these high assay values should not be considered to be representative of the average values to be expected over the thickness of the mineralized zone. There is no history of proper channel sampling of the mineralized zones and there is no report of any historical diamond drilling on the property. A horizontal tunnel completed in 1942 for a distance of 142 metres into the mountain is reported to have not intersected the mineralized zone. The property is road accessible from a series of logging roads and is located approximately 70km north of Kaslo B.C. and 2 km to the east of Duncan Lake.
The terms of the proposed acquisition are that Rainbow will issue to the shareholders of Braveheart one common share of Rainbow in exchange for each share of Braveheart. Rainbow has been advised by Braveheart that there are currently 7,986,137 common shares of Braveheart currently issued and outstanding.
The completion of the acquisition remains subject to Rainbow completing due diligence, execution of a definitive binding agreement and receipt of all required approvals, including approval of the TSX Venture Exchange and shareholder approval of Braveheart.
Rainbow Resources Inc. is a junior exploration company focused on the Company's St. Paul Bay Project which consists of 12 contiguous unpatented claims covering approximately 192 hectares in the common corner of Fairlie, Heysen and Baird townships in Ontario, Canada. Earlier in 2011, the Company carried out an exploration program on these claims which involved drilling a total of 9 holes aggregating a total of 1921 metres. While the assays from these holes returned no significant values, Rainbow is continuing to assess other data related to these mineral claims.
Rainbow's shares are listed for trading on the TSX Venture Exchange under the symbol RBW.V. Rainbow currently has 16,840,000 common shares issued and outstanding.
Bruce Durham, P.Geo, a Qualified Person under NI 43-101 is responsible for the technical information contained in this release related to the mineral claims held by Braveheart.. All information of a technical nature contained in this release is of a historical nature and should not be relied upon. The Qualified Person has not visited the property or verified the data contained in the various historical reports on the geology and mineralization on the property.
Gerald Harron, P.Geo., a Qualified Person under NI 43-101 is responsible for the technical information contained in this release related to the St. Paul's Bay project.
For further information: R. Brian Murray, (416) 985-7810 Visit our website at www.rainbowresourcesinc.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.