TORONTO, ONTARIO--(Marketwired - March 17, 2014) - Reliant Gold Corp. ("Reliant" or the "Corporation") (TSX VENTURE:REC) is pleased to announce that it has agreed to the principal commercial terms for a joint venture agreement with Probe Mines Limited (TSX VENTURE:PRB) ("Probe") with respect to Reliant's Borden Lake South Property (the "Property"), located in Chapleau, Ontario.
The principal commercial terms of the joint venture are as follows:
- Probe and Reliant will have a 51% interest and a 49% interest, respectively, in the joint venture;
- Probe will make a cash payment of $200,000 and issue 100,000 common shares of Probe to Reliant upon the execution and delivery by the parties of a definitive joint venture agreement;
- Probe will be responsible for maintaining the Property in good standing until the earlier of (i) the completion of a bankable feasibility study with respect to the Property; and (ii) the date which is five years from the date of the execution and delivery by the parties of a definitive joint venture agreement;
- Probe will be responsible for funding 100% of the joint venture until the earlier of (i) the delivery of a positive bankable feasibility study with respect to the Property by Probe to Reliant; and (ii) the date which is five years from the date of the execution and delivery by the parties of a definitive joint venture agreement;
- on delivery of a positive bankable feasibility study with respect to the Property by Probe to Reliant on or prior to the date which is five years from the date of the execution and delivery by the parties of a definitive joint venture agreement, Probe will earn an additional 24% interest in the joint venture increasing its interest to 75% and, thereafter, Probe and Reliant will be responsible for the costs of maintaining the Property in good standing and funding the joint venture as to 75% and 25%, respectively; and
- if a positive bankable feasibility study with respect to the Property is not delivered by Probe to Reliant on or prior to the date which is five years from the date of the execution and delivery by the parties of a definitive joint venture agreement, the interests of the parties in the joint venture will be fixed at 51% and a 49% for Probe and Reliant, respectively, and, thereafter, the parties will be responsible for the costs of maintaining the Property in good standing and funding the joint venture in those percentages.
The joint venture is subject to the execution and delivery by the parties of a definitive joint venture agreement by no later than April 4, 2014 and the receipt of all necessary board and regulatory approvals. The joint venture is being entered into as a variation to the existing relationship between Probe and Reliant with respect to the Property under an option agreement made effective as of the 12th day of March, 2012 pursuant to which Probe has an option to acquire up to a 70% interest in the Property.
"The proposed joint venture represents a significant opportunity to further develop the potential of the Borden Lake South Property", said Kabir Ahmed, Reliant's President and CEO. "We look forward to continuing our very positive two year relationship with Probe and its senior management team", added Errol Farr, Reliant's Chairman.
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. Reliant holds a 100% interest in the Borden Lake South Property, comprised of 20 mining claims representing 294 claim units covering approximately 4,704 hectares, located 10 kilometres east of the Town of Chapleau, Ontario. The common shares of Reliant trade on the TSX Venture Exchange under the stock symbol "REC".
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 Reliant's prospectus and in other continuous disclosure documents that will be filed by Reliant 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, 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.