Reliant Gold Corp.
TSX VENTURE : RNG

Reliant Gold Corp.

August 17, 2017 09:00 ET

Reliant Gold Closes Offering of Flow through Units

TORONTO, ONTARIO--(Marketwired - Aug. 17, 2017) -

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

Reliant Gold Corp. ("Reliant Gold" or the "Corporation") (TSX VENTURE:RNG) is pleased to announce that it has issued 300,000 Flow-Through Units (the "FT Units") of the Corporation at a price of $0.05 per FT Unit for aggregate gross proceeds of $15,000 pursuant to the terms of its previously announced private placement offering (the "Offering").

Each FT Unit consists of (i) one flow-through common share of the Corporation and (ii) one non-flow-through common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder thereof to purchase one non-flow-through common share of the Company ("a Warrant Share") at a price of $0.10 until August 17, 2019.

On a per-FT Unit basis, the Corporation will allocate $0.0499 to each flow-through common share and $0.0001 to the Warrant. An amount equal to the gross proceeds from the flow-through common shares ($0.0499 per flow-through common share) will be used to incur Canadian exploration expenses, as defined under the Income Tax Act (Canada), that will be renounced by the Corporation in favour of the purchasers of the FT Units with an effective date of no later than December 31, 2017.

The Offering was closed pursuant to a TSX Venture Exchange ("TSXV") Letter, dated July 17, 2017, providing conditional acceptance. All securities issued pursuant to the Offering will be subject to a statutory four month hold period ending December 17, 2017 in accordance with the rules and policies of the TSXV and applicable Canadian securities laws. The Offering remains subject to final acceptance of the TSXV.

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 GOLD

Reliant Gold is a junior mineral exploration company engaged in the acquisition, exploration and development of properties for the mining of precious and base metals. Reliant Gold currently holds a 100% interest in the East Bay Property, comprised of 56 mineral claim units totalling 896 hectares in the McVicar Lake area, located approximately 90 kilometres west of Pickle Lake, Ontario, and 130 kilometres southwest of Goldcorp Inc.'s Musselwhite Gold Mine.

In addition, Reliant Gold holds a one-percent (1%) royalty on the net smelter returns from the future production and sale of minerals from Borden Lake South (the "NSR"), with Goldcorp Inc. having the right, at any time, to purchase fifty percent (50%) of the NSR from Reliant Gold by making a cash payment of $500,000 (plus any applicable taxes) to Reliant Gold, and a right of first refusal in favour of Goldcorp Inc. with respect to any future transfers of the NSR by Reliant.

The common shares of Reliant Gold trade on the TSX Venture Exchange under the stock symbol ″RNG″. At the closing of the Offering, the Corporation now has 23,245,169 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 Gold 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 Gold 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 Reliant Gold's prospectus and in other continuous disclosure documents that are filed by Reliant Gold from time to time with the Ontario, Alberta or British Columbia Securities Commissions which are available at www.sedar.com and to which readers of this press release are referred for additional information concerning Reliant Gold, its prospects and the risks and uncertainties relating to Reliant Gold 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 Gold 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 Gold 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 Gold 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

  • Kabir Ahmed
    Chairman, President, CEO and Director
    Reliant Gold Corp.
    info@reliantgold.com
    (416) 820-4107