- Reunion Gold (RGD) is set to raise up to C$4 million in a non-brokered private placement to fund exploration work at its projects in the Guyana Shield
- The company intends to issue 50 million units at a price of eight cents each, consisting of one common share and half of one common share purchase warrant
- Each whole warrant will entitle the holder to acquire an additional common share at a price of 12 cents
- Dundee Corporation, an existing shareholder in the company, has indicated its intention to purchase 18.75 million units for a total of $1.5 million
- Reunion Gold (RGD) is currently steady at 11 cents per share
Reunion Gold (RGD) is set to raise up to C$4 million in a non-brokered private placement to fund exploration work at its projects in the Guyana Shield.
Under the terms of the placement, the Longueuil, Quebec-based company will issue up to 50 million units at a price of eight cents each. These units will be comprised of one common share in the company and half of one common share purchase warrant.
Each whole warrant will entitle the holder to acquire an additional common share at a price of 12 cents, exercisable over a period of 24 months from the date of issuance.
Dundee Corporation, an existing 12.2 per cent shareholder, has indicated its intentions to participate in the offering for 18.75 million units at a total cost of $1.5 million.
In addition, certain insiders of Reunion Gold will subscribe for a package of units. Such a move will not require prior shareholder approval, since the the fair market value of the shares would not exceed 25 per cent of the company’s total market capitalisation.
Reunion Gold anticipates using the proceeds from the placement to advance exploration work at its gold projects in the Guyana Shield, as well as for general working capital purposes.
The Guyana Shield is considered one of the most prospective geographies for the discovery of high-grade orogenic gold deposits.
Guyana, Suriname and French Guiana, which make up the Guyana Shield, all host significant greenstone belts from which new gold discoveries are expected to emerge.
To date, the region has recognised at least 15 gold mines with an estimated 110 million ounces of gold. However, further discoveries have been limited due to a substantial lack in exploration – a gap in the market which Reunion Gold is hoping to fill.
Reunion Gold (RGD) is currently steady at 11 cents per share at 3:38pm EDT.
