Re: Rec and Probe

Solid foundations. New horizons.

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Darko

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Re: Rec and Probe

in response to

Rec and Probe

Ironwill

posted on Apr 01, 2014 10:52AM

Reliant, Probe finalize Borden Lake South JV

2014-04-01 09:25 ET - News Release

See News Release (C-REC) Reliant Gold Corp

Mr. Kabir Ahmed of Reliant reports

RELIANT GOLD AND PROBE MINES FINALIZE JOINT VENTURE AGREEMENT WITH RESPECT TO THE BORDEN LAKE SOUTH PROPERTY

Reliant Gold Corp. has successfully entered into a formal joint venture agreement with respect to its previously announced joint venture with Probe Mines Ltd. relating to Reliant's Borden Lake South property, located in Chapleau, Ont.

The principal commercial terms of the joint venture are as follows:

Probe and Reliant have an initial 51-per-cent interest and a 49-per-cent interest, respectively, in the joint venture;
Probe made a cash payment of $200,000 and issued 100,000 common shares of Probe to Reliant upon the execution of the joint venture agreement;
Probe is responsible for maintaining the property in good standing until the date that is the earlier of (i) the completion of a bankable feasibility study with respect to the property and (ii) March 12, 2019;
Probe is responsible for financing 100 per cent of the joint venture until the joint financing date;
On delivery of a positive bankable feasibility study with respect to the property by Probe to Reliant on or prior to March 12, 2019, Probe will earn an additional 24-per-cent interest in the joint venture, increasing its interest to 75 per cent, and, thereafter, Probe and Reliant will be responsible for the costs of maintaining the property in good standing, and financing the joint venture as to 75 per cent and 25 per cent, respectively;
If a positive bankable feasibility study with respect to the property is not delivered by Probe to Reliant on or prior to March 12, 2019, the interests of the parties in the joint venture will be fixed at 51 per cent and a 49 per cent for Probe and Reliant, respectively, and, thereafter, the parties will be responsible for the costs of maintaining the property in good standing and financing the joint venture in those percentages.

The joint venture was entered into as a variation to the existing relationship between Probe and Reliant with respect to the property under an option agreement made effective as of March 12, 2012, pursuant to which Probe had an option to acquire up to a 70-per-cent interest in the property.