Reunion Gold Corporation

Reunion Gold Corporation

March 29, 2011 15:16 ET

Reunion Gold Corporation-Announces C$35 Million Bought Deal Financing

LONGUEUIL, QUEBEC--(Marketwire - March 29, 2011) -


Reunion Gold Corporation (TSX VENTURE:RGD) ("Reunion" or the "Company") has announced today that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets and Dundee Securities Ltd., under which the underwriters have agreed to buy on a bought deal basis by way of private placement, 20,000,000 common shares (the "Common Shares") of the Company, at a price of C$1.75 per Common Share for gross proceeds of C$35 million. In addition, the Company has also granted the underwriters an option, exercisable up to 48 hours prior to the closing of the offering, to purchase up to an additional 15% of the number of Common Shares purchased pursuant to the offering. 

The Company intends to use the net proceeds of the offering for the continued advancement of the Company's Matthews Ridge property including resource definition drilling, metallurgical studies, technical studies including a pre-feasibility study, and for general corporate purposes.

The offering is expected to close on or about May 2, 2011 and is subject to Reunion receiving all necessary regulatory approvals, including the approval of the TSX Venture Exchange.

The securities offered have not been 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 an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

Forward-Looking Statements

This press release contains forward-looking information. Although the Company believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. Forward-looking information involves known and unknown risks, uncertainties, assumptions and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

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.

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