Reliant Gold Corp.
TSX VENTURE : REC

Reliant Gold Corp.

November 30, 2011 09:12 ET

Reliant Gold Announces Proposed Non-Brokered Offering of Up to $1 Million to Drill Borden Lake South Gold Property

TORONTO, ONTARIO--(Marketwire - Nov. 30, 2011) -

NOT FOR DISSEMINATION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Reliant Gold Corp. ("Reliant" or the "Company") (TSX VENTURE:REC) announces that it is offering up to 5,000,000 flow-through units (the "FT Units") of the Company at a price of $0.10 per FT Unit and up to 6,250,000 non-flow through units (the "Units") of the Company at a price of $0.08 per Unit for gross proceeds of up to $1,000,000 (the "Offering"). Each FT Unit will be comprised of one flow-through common share of the Company and one non-flow through share purchase warrant (each a "Warrant"). Each Unit will be comprised of one non-flow through common share of the Company and one Warrant.

Each Warrant will entitle the holder to acquire one additional non-flow through common share of the Company at a price of $0.15 per share for twenty-four months following the closing of the Offering. If, at any time after the closing of the Offering, the closing price of the Company's common shares on the TSX Venture Exchange (the "TSX-V") is greater than $0.25 for a period of 20 consecutive days, the Company may provide notice to the warrant holders that the expiry date of the Warrants will be accelerated to the day which is 30 days from the date of notice.

The flow-through common shares of the Company and the Warrants comprising the FT Units, the non-flow-through common shares of the Company and the Warrants comprising the Units, and the common shares of the Company underlying the Warrants will be subject to a four-month restricted resale period, such period to commence on the closing of the Offering.

The proposed Offering is subject to regulatory approval, including approval of the TSX-V. The proceeds of the proposed Offering will be used to perform an exploration and diamond drilling program at the Company's 100% owned Borden Lake South Property, located approximately 10 km east of the town of Chapleau, Ontario, and for working capital purposes. The proposed exploration and diamond drilling program will consist of diamond drill testing of defined exploration targets. Ground exploration completed during the summer of 2011 identified an 800 metre long east-west trending inverse polarization (IP) chargeability anomaly associated with a high magnetic signature. The anomaly was defined by the geophysical survey at the northern end of the property one kilometer south of Probe Mines Limited's Borden Lake Gold Zone. The Borden Lake South Property has never been drilled.

Trevor Boyd, Ph.D., P.Geo., a Qualified Person as defined by National Instrument NI 43-101 ("NI 43-101") and Vice-President of Exploration for Reliant, supervised the preparation of the technical information contained in this press release in compliance with NI 43-101.

This press release is not an offer to sell or a solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction. The Units being sold pursuant to the offering have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except in certain transactions exempt from the registration requirements of the United States Securities Act of 1933, as amended.

ABOUT RELIANT

Reliant is a junior mineral exploration company with an experienced management team engaged in the acquisition, exploration and development of properties for the mining of precious and base metals and uranium. The common shares of Reliant trade on the TSX-V under the stock symbol "REC". The Corporation has 21,216,668 common shares issued and outstanding.

FORWARD-LOOKING STATEMENTS

Certain statements in this press release may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of Reliant or the industry in which it operates to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this press release, the words "estimate", "believe", "anticipate", "intend", "expect", "plan", "may", "should", "will", the negative thereof or other variations thereon or comparable terminology are intended to identify forward-looking statements. Such statements reflect the current expectations of the management of Reliant with respect to future events based on currently available information and are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from those expressed or implied by those forward-looking statements. These risks and uncertainties are detailed from time to time, including, without limitation, under the heading "Risk Factors", in continuous disclosure documents filed by Reliant from time to time with the Ontario, British Columbia and Alberta Securities Commissions which are available at www.sedar.com and to which readers of this press release are referred for additional information concerning Reliant, its prospects and the risks and uncertainties relating to Reliant and its prospects. New risk factors may arise from time to time and it is not possible for management to predict all of those risk factors or the extent to which any factor or combination of factors may cause actual results, performance and achievements of Reliant to be materially different from those contained in forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, Reliant cannot assure investors that actual results will be consistent with these forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.

The forward-looking information contained in this press release is current only as of the date hereof. Reliant does not undertake or assume any obligation, except as required by law, to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

No securities commission or regulatory authority has approved or disapproved the contents of this press release. 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.

Contact Information

  • Reliant Gold Corp.
    Andrew Hara (Harasimowicz), B.Sc. (Hon.), P.Eng.
    President, Chief Executive Officer and Director
    (905) 822-4078
    (905) 822-8018 (FAX)
    info@reliantgold.com