Recently Appointed President Nicholas Clark progressing capital raising
Assessing options for sale and/or Joint Ventures on select Indonesian
Early stage discussions regarding precious metals project in North
Reliance well placed to capitalise on TSX Main Board listing status
VANCOUVER, March 25, 2013 /CNW/ - The Directors of Reliance Resources
Limited (TSX: RI) ("The Company or "Reliance") are pleased to provide
this update to shareholders.
Following the appointment of Nicholas Clark as President on 5 February
2013, and Mr Clark's subsequent relocation to North America, the
President is progressing a number of initiatives to deliver value for
Capital raising and other funding arrangements
Reliance can confirm that it is in ongoing discussions with a number of
parties that have expressed an interest in funding Reliance's growth
and development. Of particular interest to one of these parties is
Reliance's status as a Main Board TSX-listed company which presents the
company with a number of opportunities.
Although there has been a delay, due to circumstances that the Company
cannot control, there is a pleasing degree of investor interest in
funding Reliance's projects and growth opportunities, and discussions
and negotiations are ongoing and positive.
Sale and or Joint Venture of some Indonesian Assets
Reliance's portfolio of exploration assets in Indonesia are highly
prospective and have significant unlocked value. The Company has
received a number of approaches regarding a possible sale (partial or
full) of these assets. Joint Venture options have also been presented
to the Company.
These opportunities are being pursued and carefully assessed, and given
the Company's portfolio of five mineral tenements covering some 68,000
acres on the islands of Sulawesi and Halmahera, Reliance has plenty of
scope to further realize value through the sale or joint venture of
some of these assets. Negotiations are ongoing and the Company will
update shareholders when appropriate.
Indonesian Projects Progress
Recent emphasis has been placed on officially transitioning the Tanoyan
property from exploration to exploitation status. Consultants have been
engaged for environmental and mining studies. Initial presentation and
consultations with the regional government has been completed and the
process is on track. Good progress has also been made in processing the
forestry permits for the Anggrek and Roko properties and both permits
have reached the penultimate stage within the Ministry of Forestry in
Assessment of precious metals project located in North America
The Company is also in the early stages of assessing an advanced
precious metals (gold-silver) project located in North America. This
opportunity would complement Reliance's precious metals focus, and
while negotiations are at an early stage, the Board believes a more
in-depth assessment of this opportunity is warranted.
Commenting on these corporate initiatives Reliance's President Nicholas
Clark said: "Since my appointment in early February of this year, I
have undertaken a detailed review of the Company's portfolio of assets,
its growth strategy, and its funding needs, establishing the best path
forward for the Company and its shareholders.
"Negotiations around funding are ongoing and positive, and we are firmly
focused on finding a suitable partner to help further unlock the value
of our Indonesian assets. The Board has excellent commercial links in
Indonesia, and a number of opportunities are being pursued.
"One of our biggest advantages at this point is our status as a Main
Board TSX-listed Company, and this status presents Reliance with a
number of opportunities. One such opportunity is the possible
acquisition of a precious metals project in North America or South
America which we are now reviewing.
"The Reliance team is working hard to generate acceptable returns for
shareholders and we are firmly focused on these initiatives in the
immediate term. We will update shareholders as soon as practical on any
SOURCE: Reliance Resources Ltd.
For further information:
+1 864 991 6687