VANCOUVER, Feb. 26, 2016 /CNW/ - Reliance Resources Limited (TSXV: RI) ("Reliance" or the "Company") is pleased to announce that the TSX Venture Exchange (the "TSX-V") has approved the Company's share consolidation (the "Share Consolidation") on the basis of one (1) post-consolidation common share for every five (5) pre-consolidation common shares.
Effective as of the opening of markets on Monday, February 29, 2016, the Company will commence trading on the TSX-V on a consolidated basis. The post-consolidated common shares of the Company will be assigned a new CUSIP number of 76124L104 (ISIN CA76124L1040). Management anticipates that the Share Consolidation will benefit the Company by increasing investor interest, improving trading liquidity and improving the Company's ability to raise additional capital at a higher price per share. In connection with the Share Consolidation, the Company will be changing its name to Resource Capital Gold Corp., which is accompanied by a corresponding change in the Company's symbol to RCG.
As at the date hereof, there are an aggregate of 122,152,099 common shares issued and outstanding. It is expected that, upon completion of the Share Consolidation, there will be an aggregate of approximately 24,430,419 common shares issued and outstanding.
Management also believes that the name change to Resource Capital Gold Corp. will better reflect the Company's new focus on vertical integration into gold project financing and gold processing together with its ongoing focus on gold production and exploration in general. The Company is targeting a number of financial transactions as well as its new advanced stage gold and silver project in Nevada.
On behalf of the Board of Directors of Reliance
George S. Young
Chairman and CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words "believes," "may," "plans," "will," "anticipates," "intends," "could", "estimates", "expects", "forecasts", "projects" and similar expressions, and the negative of such expressions. Forward-looking information in this news release include statements about the Nevada gold and silver option and joint venture, financing requirements and the Company's future plans, objectives and business strategy.
In connection with the forward-looking information contained in this news release, the Company has made numerous assumptions, regarding, among other things, the assumption that the parties will complete the principal conditions for completion of the transaction, including but not limited to the receipt of necessary shareholder and regulatory approvals; and the assumption the Company will continue as a going concern and will continue to be able to access the capital required to exercise the option and advance its projects and continue operations. While the Company considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies. In addition, there are known and unknown risk factors which could cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. Known risk factors include, among others: the inability of the Company to complete the transaction and exercise the option; the possibility that the necessary funds cannot be raised; and the possibility that the Company may not be able to continue as a going concern in the near term.
All forward-looking information herein is qualified in its entirety by this cautionary statement, and the Company disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.
SOURCE Reliance Resources Ltd.
For further information: George S. Young at (806) 886-3317