Rainbow Resources Signs Letter of Intent to Acquire Three Lead/Silver Prospects in South -west B.C.
TORONTO, ONTARIO, October 5, 2011 -- Rainbow Resources Inc. (TSX VENTURE:RBW) ("Rainbow" or the "Company") announces that it has singed a letter agreement to acquire 3 mineral properties in the south west area of British Colombia in the same general region as the Riverside claims held by Braveheart Resources Canada Inc. which Rainbow is in the process of acquiring. The vendor is an arms length person to Rainbow.
The three properties include:
- Rhea property – the 900 hectare silver and lead prospect which is located near Nelson, BC
- President property – the 120 hectare silver and lead prospect which is located on the west side of Duncan Lake, BC
- Gold Viking & Anna property – the 600 hectare gold and silver prospect which is located near Slocan City, BC
Initial plans include mapping and sampling the properties prior to commencing a drill program in 2012.
The purchase of the properties is subject to Rainbow completing a 30 day due diligence review and the execution of a definitive binding agreement as well as the approval of Rainbow’s Board of Directors and all applicable regulatory approvals
The terms of the purchase are as follows;
On closing: - $10,000 cash + 100,000 common shares of Rainbow + a minimum of $50,000 in exploration to be spent on the properties in the 1st year
After year 1: - $10,000 cash + 150,000 common shares of Rainbow + a minimum of $150,000 in exploration to be spent on the properties in the 2nd year
After year 2: - $30,000 cash + 250,000 common shares of Rainbow + a minimum of $250,000 in exploration to be spent on the properties in the 3rd year .
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. In addition, Rainbow is in the process of acquiring Braveheart Resources Canada Inc., a private Canadian exploration company. Braveheart’s main asset is its 100% interest in the Riverside claims near Duncan Lake in southeastern British Colombia as previously described in the earlier press release on September 7, 2011.
The terms of the proposed acquisition of Braveheart 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'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.
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.