Reunion Gold announces option to acquire 75% in Dorlin gold project in French Guiana
LONGUEUIL, QUEBEC--(Marketwired - Feb 7, 2017) - Reunion Gold Corp. (TSX VENTURE:RGD) (the "Company") is pleased to announce that it has entered into an option agreement to acquire a 75% interest in the Dorlin Project in French Guiana from Société Minière Yaou-Dorlin ("SMYD"), a subsidiary of AUPLATA S.A., a French company listed on Alternext.
The Dorlin Project consists of an 84 km2 Exploitation Permit for gold, in the central west region of French Guiana, approximately 190 km SW of the capital Cayenne, within an area open to mining activity. The Project is underlain by rocks typical of the greenstone belts of the Guiana Shield, in the Yaou-Dorlin area, which hosts numerous small artisanal gold workings. In the 1990's substantial exploration work was conducted in the area by Guyanor Ressources and Cambior Inc. AUPLATA is carrying out a small scale alluvial gold mining operation using contractors on the Project area.
The option is subject to certain conditions precedent including the renewal of the Dorlin Project permit and the completion by the Company of technical and legal due diligence on the Project. The option will be valid for a period of five years from the date all conditions precedent are satisfied. To exercise the option to acquire a 75% interest in the Dorlin Project, the Company will have to complete and deliver a feasibility study to SMYD within a period of four years and six months of the beginning of the option period. To maintain the option, the Company has to spend at least US$3 million in the first three years. Once the option is exercised, SMYD will have to choose between maintaining a 25% participating interest ("PI") or a 5% net profit interest ("NPI"). If SMYD chooses a 25% PI, Reunion will have the option to acquire an additional 5% PI from SMYD for a consideration based on the NPV in the feasibility study.
The Dorlin Project is subject to a 0.5% royalty payable to Euro Ressources, a subsidiary of Iamgold. SMYD filed an application to renew the Dorlin permit in July 2015 and it is still pending.
This news release may contain certain forward-looking statements including, but not limited to, statements about the acquisition of an interest in the Dorlin Project. Such statements are subject to a number of risks, uncertainties and assumptions. The Company may be unable to exercise the option to acquire an interest in the project for various reasons including, but not limited to, the Dorlin Permit not being renewed, or if the Company is unable to obtain all necessary regulatory approvals, permits and funds to complete a feasibility study within the option period. There can be no assurance that such statements will prove to be accurate.
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 the Company
Reunion Gold Corp. is a mineral exploration company focused on the acquisition, exploration and development of mineral properties in the Guiana Shield of South America. Information about Reunion is available on SEDAR (www.sedar.com) and its website (www.reuniongold.com).
Contact
Reunion Gold Corp.
David Fennell, Chairman and interim President & CEO
+1 450.677.2585
+1 450.677.2601
info@reuniongold.com