Rainmaker Mining Corp. Announces Acquisition of Peace River Frac Sand Property,
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 02/05/14 --
Rainmaker Mining Corp. ("Rainmaker") (TSX VENTURE: RMG) is pleased to
announce that it has entered into a Letter of Intent (LOI) with the
50/50 partnership of Zimtu Capital Corp. and 877384 Alberta Ltd. to
acquire four metallic and industrial minerals permits in north
western Alberta, totaling approximately 24,363 hectares. The permits
have potential to host deposits of silica sand suitable for hydraulic
fracturing, and are immediately adjacent to a current producer.
The terms of the acquisition are:
-- $10,000 on signing the LOI;
-- Issuance of 750,000 common shares on TSX-V acceptance of the agreement;
-- $10,000 on completion of a successful exploration program on or before
September 15, 2014;
-- Issuance of 750,000 common shares on completion of a successful
exploration program on or before September 15, 2014;
-- The Vendors retains a 2% royalty on production, 1% of which can be
purchased for $1,000,000.
The transaction is subject to acceptance by the TSX Venture Exchange.
Chris M. Healey, Vice President - Operations for Rainmaker commented,
"The acquisition of these four claims, adjacent to a current producer
of frac sands, is a highly significant addition to our growing
portfolio of properties. The claims are well located relative to
several markets, and have excellent access to rail, giving Rainmaker
a significant competitive advantage in this rapidly expanding
Peace River project:
The property is located north of the community of Peace River,
adjacent to the Peace River Frac Sand Quarry, which is owned and
operated by Canadian Silica Industries. It extends for approximately
40 km along the Peace River, straddling both the East and West banks
where the target unit is exposed. Within the region, the Lower
Cretaceous Paddy Member of the Peace River Formation is currently
mined for frac sand. The Paddy Member is a friable sand unit
representing a shoreline facies deposited in a fluvial environment,
with a thickness up to 16.5 m (7.7 m average). The sand grains are
almost entirely colorless quartz and beds are dominantly uncemented,
which is ideal as a frac sand proppant in hydraulic fracturing.
The Peace River Frac Sand Quarry reportedly has a total annual
capacity of 500,000 tonnes of silica sand. Rainmaker is encouraged by
this acquisition given its proximity to infrastructure such as rail
and roads, and location near the community of Peace River.
Additionally, it is located in close proximity to the Horn River,
Montney, and Cardium basins, and is central to the Frac Sand market
within northwestern Alberta.
High priority exploration targets have been identified along the
river banks from historic reports and maps. Rainmaker plans to
commence exploration on the property with an extensive channel
sampling program, as soon as snow conditions permit. Using sample
results in conjunction with historic data and public information such
as well logs, reports, drill core and cuttings, a follow-up auger
program is anticipated to take place within the first half of 2014 to
delineate locations with the best combination of quality,
distribution, thickness, tonnage and accessibility.
The technical information in this news release has been prepared and
reviewed on behalf of the Company by Patrick Kluczny, P.Geol., of
Dahrouge Geological Consulting Ltd., a Qualified Person pursuant to
National Instrument 43-101.
On Behalf of the Board of Directors,
Rainmaker Mining Corp.
Bev Funston, Director
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.
Rainmaker Mining Corp
(604) 921-1898 (FAX)
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