/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
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.
RELIANCE RESOURCES LIMITED
NICHOLAS CLARK
[President]
SOURCE: Reliance Resources Ltd.
Further Information, please contact: 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".
NICHOLAS CLARK
[President]
SOURCE: Reliance Resources Ltd.
Nicholas Clark
nc@relianceresources.com.au
+1 864 991 6687
Copyright CNW Group 2013
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