Reliable has completed the issuance of 30,000,000 special warrants at a price of $0.30 per Special Warrant and 16,500,000 common shares of the Company issued on a "flow-through" basis, at a price of $0.365 per FT Share, for aggregate gross proceeds of $15 million. This bought-deal financing, previously announced on May 12, 2010, was led by Raymond James and included Canaccord Genuity, Acumen Capital Finance Partners Limited and Clarus Securities. The Special Warrants and FT Shares issued pursuant to the Offering are subject to trading restrictions until September 28, 2010.
Each Special Warrant entitles the holder to receive, for no additional consideration and without further action on the part of the holder, one common share of the Company. The Special Warrants will be exercisable by the holder at any time after the Closing and all unexercised Special Warrants will be deemed to be exercised on the earlier of (a) September 28, 2010, and (b) that day on which a Receipt is issued by the securities regulatory authorities in the Provinces of Alberta, British Columbia and Ontario for a final prospectus qualifying the Common Shares to be issued upon the exercise of the Special Warrants.
The Company will use reasonable commercial efforts to file a final prospectus qualifying the Common Shares issued upon exercise of the Special Warrants pursuant to National Instrument 44-101 and obtain a final passport receipt evidencing a receipt for the Prospectus on behalf of each of the securities regulatory authorities in each of the provinces of BC, Alberta and Ontario, pursuant to Multilateral Instrument 11-102 on or before July 9, 2010. If the Receipt dated on or before the Qualification Deadline is not obtained, the Company shall issue to each holder of Special Warrants, for no additional cost to and without further action on the part of such holder, an additional 0.1 of a Common Share for each Common Share to be issued to such holder pursuant to the Special Warrant held by such holder. If a Receipt is not obtained dated on or before the Qualification Deadline, the Company shall nevertheless continue to use its best efforts to obtain such Receipt.
Proceeds of the Offering will be used to fund Reliable's exploration and development program and for general corporate purposes, with the gross proceeds from the sale of the FT Shares used to fund ongoing exploration activities eligible for Canadian exploration expenses which will be renounced in favor of the subscribers of the FT Shares effective on or before December 31, 2010.
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