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Reliance Resources Formally Engages IBK Capital to Undertake a Private Placement

August 21, 2013 Download PDF

SYDNEY, Australia, Aug. 21, 2013 /CNW/ - Reliance Resources Limited (TSX: RI) ("Reliance" or the "Company") announces that a formal agreement has been entered into with IBK Capital ("IBK") to facilitate the placement of convertible debentures ("Convertible Debentures") and common share purchase warrants ("Warrants") with appropriate accredited investors; the agreement allows for aggregate gross proceeds of up to $1,490,000 (the "Private Placement") to be raised. The Convertible Debentures shall bear interest at a rate of 10% per annum and have a three-year term to maturity. The conversion price is set at 10 cents and provides a matching warrant for every $1000 invested.

The Company has paid a nominal Administrative Fee of $25,000 to IBK and has agreed to pay, upon closure of the Private Placement, a Finder's Fee equal to 9% of the proceeds of the Private Placement. The Administrative Fee is recoverable by the Company upon the close of the Private Placement.

Nicholas Clark [President of Reliance] stated: "We are pleased to have the support of such a reputable firm as IBK and look forward to working with them in support of this raise. I am confident that proceeding with this private placement, as a convertible debt offering, will help to reduce shareholder dilution while at the same time enabling Reliance to move forward with our various exploration programs. Although the market climate has been difficult, the quality and variety of the projects in our exploration portfolio have helped to differentiate us and have allowed us the opportunity to work with IBK".

Further Information, please contact:
Nicholas Clark
+1 864 991 6687

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