Reunion Gold Corporation (TSX VENTURE:RGD) (“Reunion”) is pleased to report that it has closed its non brokered private placement with Barrick Gold Corporation (“Barrick”) (NYSE:ABX)(TSX:ABX) as announced on November 27, 2017. Barrick has purchased today 48 million common shares of Reunion at a price of C$0.19 per share for total proceeds of C$9,120,000. The proceeds will be used primarily to fund exploration and development costs of Reunion’s mineral projects.
Following this private placement, Barrick owns approximately 15% of Reunion’s issued and outstanding common shares on a non-diluted basis. The common shares issued to Barrick are subject to a hold period expiring April 2, 2018.
In connection with the private placement, Reunion and Barrick have entered into an investor rights agreement which provides certain rights and obligations so long as Barrick continues to hold more than 10% of the then issued and outstanding common shares of Reunion, as more fully described in the November 27, 2017 news release.