Reunion Gold Announces Closing of Option on the Haute Mana Gold Project in French Guiana
TSX VENTURE: RGD
LONGUEUIL, Quebec, April 25, 2018 (GLOBE NEWSWIRE) -- Reunion Gold Corporation (TSX-V:RGD) (the “Company”) reports that it has closed its previously announced transaction with Union Minière de Saül (“UMS”) (December 2, 2016 news release). The transaction consists of an option to acquire an 80% interest in the Haute Mana gold project in French Guiana, South America by completing a preliminary economic assessment (“PEA”) on the project. Upon completion of the PEA, the Company will be deemed to have acquired an 80% interest in the project. UMS will then have the option to retain its 20% minority participating interest, convert its interest in a 5% net profit interest or sell its 20% interest to the Company at a price to be agreed to at that time.
As part of the closing, the parties entered into an amendment to the option agreement providing that (1) the option will be valid until January 1, 2024 (was previously a 5-year option) and (2) the Company will now oversee and pay for the environmental reclamation work described in a plan approved by the French mining authorities (replacing the loan of up to 250,000 euros to UMS).
The Haute Mana Project is a contiguous block of eight (8) mining concessions covering 121.5 km² in the central-south part of French Guiana, some 170 km SW from the capital city of Cayenne. Because of recent changes to the French mining Code, the concessions will be expiring on December 31, 2018. UMS has filed applications for the renewal of the concessions. Limited field work will be conducted by the Company on the concessions during the renewal process.
This press release contains certain forward-looking information as defined in applicable securities laws. Specifically, this press release includes forward-looking information regarding the Company's option to acquire an 80% interest in the Haute mana concessions by completing a PEA. There is no assurance that the Company will complete a PEA within the option period. In addition, there is no assurance that all or any of the eight Haute Mana concessions will renewed or that the Company or UMS will be able to obtain other type of mineral titles covering the project if the concessions are not renewed. Forward-looking statements involve known and unknown risks, uncertainties and other factors including risks associated with the conduct of exploration activities, gold price volatility, regulatory approvals or permitting delays, and having sufficient funds to complete all the studies required for a PEA. All forward-looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or future events or otherwise, except as may be required by law.
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.
REUNION GOLD CORPORATION
Réjean Gourde, President & CEO
David Charles CFA, Investor Relations
Telephone: +1 450.677.2585