Mar 19 2014
Reliant Gold Corp. ("Reliant" or the "Corporation") is pleased to announce that it has agreed to the principal commercial terms for a joint venture agreement with Probe Mines Limited ("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.
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. 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".