RGD $35 million bought deal at $1.75/share:-)
Mar 29, 2011 15:16 ET
Reunion Gold Corporation-Announces C$35 Million Bought Deal Financing
LONGUEUIL, QUEBEC--(Marketwire - March 29, 2011) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.
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. |
