TORONTO, ONTARIO--(Marketwire - Oct. 17, 2012) - Reliant Gold Corp. ("Reliant" or the "Corporation") (TSX VENTURE:REC) is pleased to announce that it has, effective October 16, 2012, settled outstanding indebtedness of $62,137.64 through the issuance of common shares of the Corporation ("Common Shares") at a deemed price of $0.075 per Common Share (the "Debt Settlement"), subject to receipt of final acceptance from the TSX Venture Exchange ("Exchange"). The deemed issue price of $0.075 per Common Share of the Debt Settlement represents a significant premium to the market price of the Common Shares at the close of trading on October 15, 2012 of $0.03 per Common Share. A total of 828,501 Common Shares were issued under the Debt Settlement, which extinguished certain debts owed by the Corporation to certain officers and directors of the Corporation for professional and management services rendered by them to the Corporation. The Debt Settlement was completed in order to preserve and conserve the cash reserves of the Corporation.
The Common Shares issued pursuant to the Debt Settlement will be subject to a four-month restricted resale period, which will expire on February 17, 2013.
The Corporation received conditional acceptance from the Exchange for the aforesaid Debt Settlement by way of a letter dated October 15, 2012, and the Company expects to file all final documents with the Exchange on an expedited basis in order to obtain final acceptance.
The Debt Settlement occurred on October 16, 2012, as the Corporation immediately required the working capital freed up by the Debt Settlement in order to satisfy its other operational and corporate obligations.
Immediately following the completion of the Debt Settlement, there were 22,145,169 Common Shares of the Corporation issued and outstanding.
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 and uranium. The Company holds: (i) 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 and (ii) an option to acquire a 100% interest in the MC Dalhousie Property located in northwestern British Columbia, Canada. The common shares of Reliant trade on the TSX Venture Exchange under the stock symbol "REC".
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.