Reunion Gold Corporation
TSX VENTURE : RGD

Reunion Gold Corporation

September 19, 2017 08:30 ET

Reunion Gold Announces Closing of Final Tranche of Non-Brokered Private Placement

LONGUEUIL, QUEBEC--(Marketwired - Sept. 19, 2017) -

THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES

Reunion Gold Corporation (TSX VENTURE:RGD) (the "Company") reports that it has closed a second and final tranche of the non-brokered private placement announced on August 23, 2017 (the "Financing"). The Company has issued 6,157,800 units ("Units") at a price of $0.13 per Unit for gross proceeds of $800,514. The Company raised an aggregate of $10,980,449 under the Financing.

Each Unit sold under the Financing consists of one common share of Reunion and one half of one common share purchase warrant. Each whole warrant may be exercised for one common share at a price of $0.20 per common share for a period of 36 months, subject to the Company's right to accelerate the expiry date in the event that the Company's shares trade on the TSX Venture Exchange at a closing price of $0.40 or greater for 20 consecutive trading days at any time after June 18, 2018. Pursuant to applicable Canadian securities laws, the common shares and warrants issued to subscribers under the Financing are subject to a four-month hold period. Following closing of the final tranche, the Company has 271,916,587 common shares and 42,232,495 warrants issued and outstanding.

The Company also announces that it has retained Paradigm Capital inc. to act as its financial advisor. Consideration for the advisory services will include the issuance by the Company of 2,800,000 non-transferrable warrants, exercisable for 3 years at $0.20 per share, subject to applicable TSX Venture Exchange policies.

Exploration activities

With the completion of the Financing, the Company has been planning exploration activities on the projects under option in both French Guiana (namely the Dorlin, Boulanger (CMB) and Haute Mana projects) and the Co-operative Republic of Guyana (the Aremu project). The initial focus of the activities in French Guiana will be the compilation of historical exploration data on all projects and the validation of the Dorlin geological database (including re-sampling available drill core). The Company will also be planning follow-up programs at all three projects, which may include deep auger saprolite geochemistry, trenching and diamond drilling, subject to obtaining all required permits. The immediate focus of the Company's exploration team in the Co-operative Republic of Guyana will be reviewing the available geological and artisanal gold mining information and planning a follow-up program.

Exploration activities in French Guiana will be supervised by Dominique Fournier, the Company's new exploration manager. Mr. Fournier who began working for Reunion in early September holds a doctorate degree in applied geology from Paris University and is a member of the European Federation of Geologists (EurGeo). He brings more than 30 years of experience in the minerals industry in operational and managerial capacities. He has worked for major and mid-tier mining companies, such as Asarco and Alamos Gold as exploration manager and as vice president exploration for junior mining companies. His work experience covers a variety of countries and geological environments including Canada, Mexico, French Guiana, Mongolia, West and East Africa and Turkey. He was involved in the discovery or expansion of five gold deposits in French Guiana and Turkey.

Cautionary Statement

The Financing, the issuance of the warrants to Paradigm and the closing of the option agreement on Haute Mana are all subject to receipt of TSX Venture Exchange final acceptance. The common shares issued under the Financing have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the common shares in any jurisdiction in which such offer, solicitation or sale would be unlawful.

This press release contains certain forward-looking information as defined in applicable securities laws (referred to as "forward-looking statements. Specifically, this press release includes forward-looking statements regarding the Company's plans to complete exploration programs and to acquire interest in the various projects. Inherent in forward-looking statements are risks, uncertainties and other factors beyond the Company's ability to predict or control. These risks, uncertainties and other factors include, but are not limited to, the uncertainties involved in getting all necessary approvals to be able to conduct the exploration programs and meeting all the conditions to acquire interest in the various projects under the respective option agreements, and other risks involved in the gold exploration and development industry. Readers are cautioned that the list included herein not exhaustive of the factors that may affect the forward-looking statements. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release. The exercise of the option agreements to acquire an interest in the Haute Mana, Dorlin and Boulanger projects are all subject to certain conditions including receipt of regulatory approvals under the French mining code. The performance of certain exploration activities under the planned exploration programs is subject to receipt of certain authorizations under the French mining code and regulations. There can be no assurance that the Company will be able to conduct the exploration programs as described or that the Company will be able to exercise the options and acquire interest in the projects. 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.

Additional information about the Company is available on SEDAR (www.sedar.com) and its website (www.reuniongold.com).

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