Reservoir Capital Corp.

Reservoir Capital Corp.

November 29, 2010 07:00 ET

Reservoir Capital Corp. Announces Successful Completion of $3,060,000 Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 29, 2010) - Reservoir Capital Corp. (TSX VENTURE:REO)


Reservoir Capital Corp. ("Reservoir" or the "Company") is pleased to announce that it is has completed a non-brokered private placement financing (the "Private Placement") of $3,060,000 by the issuance of 5,100,000 units at $0.60 per unit. Each Unit is comprised of one common share (a "Share") and one non-transferable, common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder thereof to acquire an additional Share at a price of $0.80 per share during the first year and $0.90 during the second year from the closing of the private placement. If after the expiry of all resale restrictions, the closing price of the Shares on the TSX Venture Exchange is $1.20 or greater for a period of 20 consecutive trading days, the Company will provide notice of an earlier expiry of the Warrants, in which case the Warrants shall expire 21 trading days after giving such notice.

Finder's fees were payable in a combination of 6% Units and 5% Finder Warrants ("FW") to Haywood Securities Inc. (30,000 Units/20,000 FW), Global Resource Investments Inc. (112,750 Units/98,950 FW), Raymond James Ltd. (30,000 Units/25,000 FW), All Group Financial Services (6,000 Units/5,000 FW), Northland Capital Partners Inc. (42,000 Units/35,000 FW) and Trimark Trading (18,000 Units/15,000 FW) in consideration of their efforts in locating investors. The FW's are priced at $0.60 per Share and are exercisable for a 24 month period.

The Shares, and any Shares issued on the exercise of the Warrants or Finder Warrants, are subject to a restricted resale period under Canadian securities law and cannot be traded before March 27, 2011.

The proceeds of the offering will be used by Reservoir to support the Feasibility Studies on the Brodarevo Projects, new business efforts in the renewable energy sector and for general corporate purposes.

About Reservoir

Reservoir is a renewable energy company, engaged in development of a 58.4 MW hydroelectric project at Brodarevo in southwest Serbia. Reservoir holds four geothermal exploration licenses in Serbia and has applied for hydroelectric licenses to develop a further 17.75 MW on the Cehotina river in Bosnia and a 32 MW project from an existing dam at Vrutci in Serbia. The Company also holds a portfolio of precious and base metal exploration properties in Serbia, which it is seeking to divest, two of which are joint ventured with Freeport McMoRan Exploration Corp., and a third with Orogen Gold Limited. Reservoir's common shares trade on the TSX Venture Exchange (symbol "REO") and on the Frankfurt and Berlin Exchanges (symbol "ROC").

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933 (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws, or an exemption from such registration is available.

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Contact Information