Reunion raising $15 million for gold exploration

The St. Marie pit at the Boulanger Project in French Guiana. Source: Reunion Gold Corp.

Share this article

The St. Marie pit at the Boulanger Project in French Guiana. Source: Reunion Gold Corp.

Reunion Gold Corp. [RGD-TSXV] was an active trader Thursday December 13 after the company said it is raising $15 million from a private placement to fund exploration and development of the company’s gold projects in the South American countries of French Guiana and Guyana. The shares fell 5.4% or $0.01 to 17.5 cents on volume of 2.17 million.

Reunion’s asset portfolio consists of six projects, including three in French Guiana and three in Guyana. In French Guiana, Reunion has options to acquire a 75% stake in the Dorlin Project, which contains a historical estimate of 1.6 million ounces of gold. It can also acquire a 100% interest in the 78.2 km2 Boulanger Project which is located 40 km south of Cayenne. In addition it can acquire an 80% stake in the 122 km2 Haute Mana Project.
In Guyana, early stage exploration is underway in the Northwest District, at the Waiamu, Aremu, and Arawini projects, all with artisanal gold production. Waiamu and Aremu are 45 km and 90 km respectively from Guyana Goldfields Inc.’s [GUY-TSX, OTC-GUYFF] Aurora Mine.

As of September 30, 2018, the company had $7 million in cash and enjoyed strong support from major shareholders Dundee Corp. (16.5%) and Barrick Gold Corp. ABX-TSX, NYSE. Other investors include Donald Smith Value Fund (6.0%) and Gold 2000 (4%).

On Thursday, Reunion said it plans to complete a non-brokered private placement of up to 83.3 million common shares at 18 cents per share. The company said Barrick Gold and Dundee have indicated that they intend to participate in the offering by acquiring enough shares to maintain their existing equity interest in Reunion.

The announcement comes on the heels of news that Reunion has defined drill targets by a combination of geophysical surveys with structural interpretation at the Boulanger Gold Project.

The objective of the planned exploration program at Boulanger in 2019 is to integrate and expand the enhanced geological understanding of the gold mineralization over the entire project and to drill test the targets generated. The company said an initial 1,500-metre drill program is planned for the second quarter.

Reunion has recently said it is planning to launch a 3,000-metre drilling program to the north of the Nivre deposit on the Dorlin Project. The company has just completed the first phase of an expansion drilling program for the Nivre gold deposit, consisting of 49 holes. The program generated 5,709 metres of core. Results of the first 21 holes were released on November 6, 2018 and included intersections of 20.81 g/t gold over 3.7 metres and 4.64 g/t gold over 20.2 metres.

The balance should be available soon, the company has said.
The Dorlin mining district has been one of the major artisanal gold producing areas in French Guiana since 1901, when alluvial gold was discovered along the Petit Inini River and the area became famous for producing large gold nuggets. Reunion has an option to acquire 75% of the Dorlin Project from Auplata SA, by completing a feasibility study and spending a minimum of US$3 million over three years. It can acquire another 5% for an amount based on the net present value in the feasibility study.

Share this article

Leave a Reply

Your email address will not be published. Required fields are marked *

Don't miss the


Exclusive editorial

Breaking News

Quality Company Coverage

Expert Writers

You have successfully subscribed to the newsletter

There was an error while trying to send your request. Please try again.

Resource World Magazine will use the information you provide on this form to be in touch with you and to provide updates and marketing.