Reunion raises $10.5 million for Guyana gold
Reunion Gold Corp. [RGD-TSXV; RGDFF-OTC] said Thursday May 21 that it has raised $10.5 million from separate private placements and will use the proceeds to fund exploration work at its Oko West project in Guyana and for other general working capital purposes.
On May 18, 2021, the company issued a news release stating that it had closed a non-brokered private placement that generated gross proceeds of $7.4 million. The placement consisted of 114.8 million units priced at $0.065 per unit.
Each unit consisted of one common share and one-half of a common share purchase warrant, each good to buy one share for 12 cents until May 18, 2023.
On Thursday, Reunion said it had closed a previously announced brokered private placement of 46.15 million units at 6.5 cents per unit, generating gross proceeds of approximately $3 million.
Each unit consisted of one common share and one-half of a common share purchase warrant, each good to buy one share for 12 cents until May 21, 2023.
Together with company’s non-brokered private placement, Reunion has issued a total of 160.9 million units for gross proceeds of $10.5 million.
Reunion traded recently at $0.07 in a 52-week range of 14 cents and $0.05.
Reunion Gold is a leading gold explorer with a portfolio of projects in the Guiana Shield in South America. Two years ago, the company formed a strategic alliance with Barrick Gold Corp. [ABX-TSX; GOLD-NYSE] to explore, develop and mine mineral properties in the Guiana Shield.
Under the deal, the two companies pledged to form a 50:50 alliance that will cover certain mineral projects in Guyana, Suriname, French Guiana and the north and northeast regions of Brazil. Barrick committed to increase its stake in Reunion to 19.9% from 15%.
Reunion’s contribution to the alliance was the Waiamu, the Aremu, the Arawini, and the Oko projects, all of which are located in Guyana. In return, Barrick agreed to provide US$4.2 million to fund the initially included projects. This amount represents credit for the historical exploration and money already spent by Reunion. Subsequent funding will be on a 50:50 basis.
In December, 2020, Reunion announced that the NW Extension project in Suriname would be included in the strategic alliance.
The Oko West project is in the Cuyuni Mining District, about 95 kilometres west of Georgetown and is accessible by roads and trails from the town of Bartica or by boat using the Cuyuni River.
The project covers 11,900 acres of mineral rights held by local Guyanese entrepreneurs. Reunion entered into agreements entitling it to conduct exploration activities and acquire a 100% in the project area.
Trenching and drilling programs conducted by Reunion confirmed gold mineralization in shear zones coinciding with gold-in-soil anomalies and geological structures identified from airborne geophysical surveys. The maiden 1,000-metre diamond drilling program completed in January, 2021 also confirmed the downward extension of mineralized zones discovered through the weathered profile (saprolite).