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Reunion Gold Announces Completion of $1.7 Million Private Placement
Longueuil, Canada, March 27, 2020. Reunion Gold Corporation (the “Company”) (TSX-V: RGD) is pleased to announce the closing of a non-brokered private placement (the “Offering”) of 13,400,000 units (the “Units”) at a price of $0.13 per Unit for total proceeds of $1,742,000. Each Unit is comprised of one common share of the Company and one-half of one common share purchase warrant. Each whole common share purchase warrant entitles the holder thereof to acquire one common share of the Company at a price of $0.20 during a period of 36 months. All securities issued in connection with the Offering are subject to a four month and one day hold period. The Offering is subject to final acceptance of the TSX Venture Exchange.
The Company plans to use the funds from the Offering to complete some limited exploration work and maintenance on its projects and for general corporate purposes. The Company will finalize a trenching program at the Aremu North project in Guyana, part of the Strategic Alliance with Barrick Gold Corporation, on targets that have been identified based on the results from an extensive regolith sampling campaign conducted earlier this year, combined with geological mapping and interpretation from a fixed wing magnetic and radiometric survey completed in December 2019. The Company also intends to finalize studies required for the submission of a mining concession application with respect to the Dorlin project in French Guiana. In parallel, the Company will continue to review data on new projects in Guyana and Suriname for potential acquisitions and will be planning the next phases of drilling at the Boulanger project.
Given the COVID-19 pandemic outbreak and the suspension of all international travels, the Company will be suspending field activities on all projects. It has also initiated cost reduction initiatives and plans to continue its review to further reduce its expenditures to preserve cash.
The securities being offered have not been, nor will they be registered under the United States Securities Act of 1933, as amended, or state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. federal and state registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.
This press release contains 'forward-looking information' within the meaning of applicable Canadian securities legislation. Forward looking information in this news release includes information with respect to the intended use of proceeds, plans and exploration activities. Forward-looking information is based on reasonable assumptions that have been made by Reunion Gold Corporation as at the date of the information and is subject to known and unknown risks, uncertainties, and other factors, including the impact of the COVID-19 pandemic, that may have an impact on the Company’s plans and cause actual results or events to differ materially from those anticipated in the forward-looking information.
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 press release.
About Reunion Gold
Reunion Gold Corporation is a Canadian exploration company focused on acquiring, exploring and developing gold projects in the Guiana Shield, South America. The Company has various option agreements to acquire gold projects in French Guiana and Guyana. The Company’s common shares are listed on the TSX Venture Exchange under the symbol ‘RGD’. Following completion of the Offering, the Company has 432,005,271 common shares issued and outstanding. Additional information about the Company is available on SEDAR (www.sedar.com) and on the Company’s website (www.reuniongold.com).
For further information please contact:
REUNION GOLD CORPORATION
Réjean Gourde, President & CEO
Tel: +1 450.677.2585