Reliance Resources receives financing from Robust Resources
- Robust to invest $694,000 as part of recently announced $1.2 million placement
- Association with Robust brings in-country skills
- Funds used to advance resource and exploration drilling at Tanoyan Gold Project
VANCOUVER, July 10, 2012 /CNW/ - Indonesian focused exploration company Reliance Resources Ltd (the "Company") (TSX:RI) is pleased to announce that it has completed the first tranche of the $1.2 million dollar financing at $0.15 per share as reported to shareholders on June 22, 2012.
Robust Resources Limited, a company listed on the Australian Securities Exchange (ASX:ROL), has invested a total of $694,144.00 for 4,627,627 new ordinary Reliance shares. These shares will be subject to a four month hold period from the date of closing. The placement is subject TSX Exchange approval.
Headquartered in Australia, Robust Resources is an Indonesian-focused exploration and development company with a portfolio of projects in Indonesia and the Philippines. The company's flagship Lakuwahi project located on Romang Island has a JORC mineral resource of 1.18 million ounces of gold equivalent plus base metals credits. Further information is available at www.robustresources.com.au
Robust Resources and Reliance Resources have a number of common directors and they share resources in Indonesia in order to manage their respective cost bases.
Robust Resources Managing Director, Mr. Gary Lewis said Robust is particularly encouraged by the prospects for Reliance's Tanoyan Gold project in Sulawesi, Indonesia, which currently has a NI 43-101 inferred mineral Resource of 208,000 ounces of gold (4.58mt at 1.41 g/t Au) as at March 2012.
"Robust is continuing to strengthen its portfolio in Indonesia and we are constantly assessing new investment opportunities. We are particularly encouraged by the prospects for the Tanoyan Gold Project, and with its growing resource base, and with the exploration program yielding highly encouraging results, the Board took the decision that an investment in Reliance offers significant upside.
"Reliance will continue to be able to benefit from Robust's strong technical capabilities and in-country team"
Reliance's President Mr. Scott Emerson added, "It made sense to have Robust as an investor in Reliance and the synergies of both companies works well".
This funding gives Reliance the capacity to significantly advance the phase two, 10,000 metre resource and exploration drilling program which is currently underway at Tanoyan.
"We have every confidence that we will increase our mineral resource at Tanoyan and we look forward to updating shareholders on more drilling results from the project shortly."
Reliance Resources Ltd. has a portfolio of five mineral tenements covering 68,000 acres on the islands of Sulawesi and Halmahera in East Indonesia. The projects offer both exploration potential and an existing resource base. All five projects are adjacent to or along strike from operating gold mines or identified gold resources with similar geology and structural features.For further information:
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Scott Emerson, President
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