VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 3, 2013) - Golden Reign Resources Ltd. (TSX VENTURE:GRR) (the "Company" or "Golden Reign") is pleased to announce a warrant incentive program (the "Program") to amend the exercise terms for up to 15,093,197 of its outstanding unlisted common share purchase warrants (the "Warrants"). The Warrants, each of which is currently exercisable to purchase one common share of the Company at $0.75 per share until January 18, 2013, were originally issued by the Company as part of a non-brokered unit private placement financing completed in January 2011 (the "Private Placement").
Under the Program, Warrant holders may elect to pay $0.15 per Warrant in order to amend the terms of such Warrant in order that the exercise price of each Warrant would be reduced by $0.20 from $0.75 to $0.55 and the expiry date of the Warrants would be extended for a period of 12 months. In addition, should the closing price of the Company's common shares exceed $1.25 per share for a period of 20 consecutive trading days during the exercise period, the Company will have the right to accelerate the expiry date of the Warrants by giving written notice to the holders of the Warrants that the Warrants will expire on the date that is not less than 30 days from the date notice is provided by the Company to the Warrant holders.
For Warrant holders that do not elect to amend their Warrants in accordance with the terms of the Program, their Warrants will continue to be exercisable in accordance with the original terms, namely at an exercise price of $0.75 to acquire one common share of Golden Reign for each Warrant held until January 18, 2013.
The Company currently has an aggregate of 15,459,198 warrants issued and currently outstanding pertaining to the Private Placement, of which only 15,093,197 warrants are eligible for amendment, pursuant to the policies of the TSX Venture Exchange. The remaining 366,001 warrants are not eligible for amendment as such warrants were issued as finders' warrants under the Private Placement. Insiders of the Company hold less than 10% of the total number of Warrants.
The Program is subject to approval by Warrant holders and the TSX Venture Exchange.
Further, the Company confirms that the previously announced trading blackout period for all insiders, management and consultants of the Company, instituted pending release of its initial resource calculation, is no longer in effect.
On behalf of the Board,
Kim Evans, CGA, President & CEO
About Golden Reign:
Golden Reign Resources Ltd. is a publicly listed (TSX VENTURE:GRR) mineral exploration company engaged in exploring the San Albino-Murra Property and the El Jicaro Property, both of which are located in Nueva Segovia, Nicaragua.
The Company's land package comprises 13,771 hectares (138 km2) of highly prospective ground. Hundreds of historical mines and workings exist within the Corona de Oro Gold Belt, which is approximately 3 kilometres wide by 20 kilometres long and spans the entirety of the Company's land package.
For additional information please visit our website at www.goldenreign.com and SEDAR www.sedar.com.
Forward-Looking Statements: Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Such forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to political risks involving the Company's exploration and development of mineral properties interests, the inherent uncertainty of cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, the inability or failure to obtain adequate financing on a timely basis and other risks and uncertainties. Such information contained herein represents management's best judgment as of the date hereof, based on information currently available.
FOR FURTHER INFORMATION PLEASE CONTACT:
Golden Reign Resources Ltd.
Kim Evans, CGA
President & CEO
(604) 685-4655 or Toll Free: 1-888-685-4655
(604) 685-4675 (FAX)
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