Reunion Gold Announces Private Placement of up to $10 Million
November 21 2019 - 7:00AM
Reunion Gold Corporation (TSX-V: RGD) is pleased to announce that
it has entered into an agreement with Paradigm Capital Inc. and
Cormark Securities Inc. (the “Agents”) under which the Agents have
agreed to offer for sale, on a best efforts private placement
basis, 71,500,000 units (the “Units”) at a price of $0.14 per Unit
(the "Unit Price") for gross proceeds of up to $10,010,000 (the
“Offering”).
Each Unit will consist of one common share
(“Share”) of the Company and one-half of one common share purchase
warrant (“Warrant”). Each whole Warrant will entitle the holder
thereof to acquire one Share of the Company at a price of $0.20 for
a period of 24 months following the closing of the Offering.
In addition, the Company has granted the Agents
an over-allotment option to sell up to an additional 15% of the
Offering, exercisable at any time prior to 48 hours before the
closing of the Offering.
The Company intends to use the net proceeds of
the Offering for further exploration and development of the Company
mineral projects located in the Guiana Shield of South America and
for general corporate purposes.
In connection with the Offering, the Agents will
receive a cash commission equal to 6% of the gross proceeds raised
under the Offering. The Agents will also receive compensation
warrants exercisable to acquire that number of common shares equal
to 6% of the number of Units sold under the Offering at the
Offering Price for a period of 24 months following the Closing
Date. On Units sold to certain persons on the president’s list, the
Agents will receive a commission of 3% in cash and 3% in
compensation warrants.
The closing date of the Offering is expected to
occur on or about December 11, 2019. All securities issued in
connection with the Offering will be subject to a four month and
one day hold period. The Offering is subject to a number of
conditions, including, without limitation, receipt of all
regulatory approvals.
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.
Cautionary Statement
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 proposed private placement
of its securities, including the amount of proceeds expected to be
raised, the timing for closing, and the intended use of proceeds.
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 that may 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
options to acquire an interest in projects in French Guiana and
Guyana. The Company’s shares are listed on the TSX Venture Exchange
under the symbol ‘RGD’. 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 & CEOTel: +1 450.677.2585Paul Fowler,
Manager, Corporate DevelopmentTel: +1 450.677.2054Email:
info@reuniongold.com
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