Reliant Gold Corp. (TSX-V:REC) is pleased to announce that it has reached agreement, on June 1, 2016, on the principal commercial terms for a proposed purchase of Reliant’s 49% interest in the Borden Lake South mineral claims by Goldcorp Inc. Borden Lake South is comprised of 20 mining claims representing 294 claim units covering approximately 4,704 hectares, located 10 kilometres east of the Town of Chapleau, Ontario.
Goldcorp is the successor to Probe Mines Limited which entered into a Joint Venture Agreement with Reliant dated March 12th, 2014 whereby a joint venture was created between the parties with respect to Borden Lake South.
Under the terms of the 2014 JV Agreement, Goldcorp is the Operator of the Borden Lake South JV and holds a fifty-one percent interest in the Borden Lake South JV, with Reliant currently holding the remaining forty-nine percent interest. Additional details of the 2014 JV Agreement are fully described in Reliant’s press release dated April 1, 2014.
The Contemplated Transaction proposes a purchase by Goldcorp of Reliant’s 49% interest in the Borden Lake South JV and Borden Lake South on the following terms:
The Contemplated Transaction is being entered into by the parties as a variation to the 2014 JV Agreement, which itself, was the result of a variation of an existing relationship between Probe and Reliant with respect to Borden Lake South under an option agreement made effective as of the 12th day of March, 2012, pursuant to which Probe had an option to acquire up to a 70% interest in Borden Lake South.
The completion of the Contemplated Transaction is subject to execution and delivery by the parties of a final and definitive agreement of purchase and sale by no later than July 2, 2016, and receipt of all necessary board and regulatory approvals. It is anticipated that Reliant will not require shareholder approval for completion of the Contemplated Transaction, since the (1) Contemplated Transaction does not represent a disposition of more than 50% of Reliant’s assets; (2) the parties to the Contemplated Transaction are at Arm’s Length to one another, and are not related parties; and (3) the Contemplated Transaction, once completed, will raise working capital for Reliant without any dilution to Reliant’s existing shareholders since no new securities will be issuable by Reliant as a result of the Contemplated Transaction. The Borden South JV will be terminated upon the closing of the Contemplated Transaction.
In addition to its 49% interest in Borden Lake South, Reliant currently holds a 100% interest in the East Bay Property, comprised of 56 mineral claims totalling 896 hectares in the McVicar Lake area, located approximately 90 kilometres west of Pickle Lake, Ontario, and 130 kilometres southwest of Goldcorp Inc.’s Musselwhite Gold Mine.
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 currently holds (1) a 49% interest in Borden Lake South, 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 (2) a 100% interest in the East Bay Property, comprised of 56 mineral claims totalling 896 hectares in the McVicar Lake area, located approximately 90 kilometres west of Pickle Lake, Ontario, and 130 kilometres southwest of Goldcorp Inc.’s Musselwhite Gold Mine. The common shares of Reliant trade on the TSX Venture Exchange under the stock symbol “REC”. The Corporation currently has 22,945,169 common shares issued and outstanding.
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