VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 10, 2012) - Golden Reign Resources Ltd. (TSX VENTURE:GRR) (the "Company") is pleased to announce the signing of an investor relations agreement with The Covenant Gold Fund ("Covenant") for the provision of marketing, investor relations and communications services.
Covenant will seek to build broader market awareness of Golden Reign and its Nicaraguan properties within the retail, brokerage and institutional investment communities in North America.
Covenant has been granted an option to purchase 50,000 common shares of the Company at a price of $0.80 per share and a further 50,000 at a price of $1.00 for a period of twenty-four months, subject to vesting provisions in accordance with Company's Stock Option Plan and the policies of the TSX Venture Exchange. The agreement is for a one-year term, expiring on August 8, 2013, which may be extended by mutual agreement. Compensation to be paid to Covenant is restricted to the stock option granted, with no cash payments.
Covenant, an arms-length company based in Marina Del Ray, California, is a boutique investment advisory firm dealing exclusively with small cap miners and explorers. Its focus is two-fold: first, to assist companies in the $50-$250 million market cap range reach the next stage of growth; second, to introduce the institutional investment community to companies that anticipate positive catalysts over the next 1-2 years.
Mr. Amir Ness, Covenant's CEO states: "Golden Reign is a perfect example of a company with potential for developing significant assets and solid long term growth prospects. Our job is to articulate the nature of Golden Reign's potential and to raise awareness within the hedge fund community. Many institutional investors gain exposure to this sector by means of ETF's and the like; however, the greatest gains are realized when investments are made in early stage projects that have significant catalysts in their future. We believe Golden Reign fits that description and we look forward to working with management and the hedge fund community."
Covenant is wholly-owned by Mr. Amir Ness. Mr. Ness began his career in the oil & gas industry in California. After selling his company, he became a financial adviser for private clients. More recently, he was working as a proprietary trader for a New York based firm. In early 2012, Mr. Ness started his own investment advisory firm focused on the precious metals sector. He currently holds 80,000 common shares of the Company indirectly.
Stock option grant
The Company has granted, pursuant to its stock option plan and subject to regulatory approval, 1,365,000 options to directors, officers, employees and consultants at an exercise price of $0.80 per share for a term of five years. The securities represented by this grant will be subject to a four-month hold period.
On behalf of the Board,
Kim Evans, CGA, President & CEO
About Golden Reign:
Golden Reign Resources Ltd. is a publicly listed (TSX VENTURE:GRR) mineral exploration company engaged in exploring the San Albino-Murra Property and the El Jicaro Property, both of which are located in Nueva Segovia, Nicaragua. The Company recently earned an 80% interest in the San Albino-Murra Property, approximately 1.5 years ahead of schedule. The El Jicaro Property is 100% owned by Golden Reign.
The Company's land package comprises 13,771 hectares (138 km2) of highly prospective ground. Hundreds of historical mines and workings exist within the Corona de Oro Gold Belt, which is approximately 3 kilometres wide by 20 kilometres long and spans the entirety of the Company's land package.
For additional information please visit our website at www.goldenreign.com and SEDAR www.sedar.com.
Forward-Looking Statements: Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Such forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to political risks involving the Company's exploration and development of mineral properties interests, the inherent uncertainty of cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, the inability or failure to obtain adequate financing on a timely basis and other risks and uncertainties. Such information contained herein represents management's best judgment as of the date hereof, based on information currently available.
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.