Deal includes C$5.25 million greenshoe; proceeds fund Matthews Ridge
By Devika Patel
Knoxville, Tenn., April 20 - Reunion Gold Corp. said it concluded a C$40.25 million private placement of stock. The deal, which was conducted on a bought-deal basis by a syndicate of underwriters led by BMO Capital Markets and Dundee Securities Ltd., priced for C$35 million with a 15% greenshoe on March 29.
Reunion Gold sold 23 million common shares at C$1.75 apiece, a 10.26% discount to the March 28 closing share price of C$1.95. Of the shares, 3 million were part of the fully exercised greenshoe.
Proceeds will be used for advancement of the company's Matthews Ridge property, including resource definition drilling, metallurgical studies and technical studies that include a pre-feasibility study, and for general corporate purposes.
Based in Longueuil, Quebec, Reunion Gold acquires and explores gold properties.
| Issuer: | Reunion Gold Corp.
|
| Issue: | Common shares
|
| Amount: | C$40.25 million (including C$5.25 million greenshoe)
|
| Units: | 23 million
|
| Price: | C$1.75
|
| Warrants: | No
|
| Agent: | BMO Capital Markets and Dundee Securities Ltd. (leads)
|
| Pricing date: | March 29
|
| Settlement date: | April 20
|
| Stock symbol: | TSX Venture: RGD
|
| Stock price: | C$1.85 at close March 29
|
| Market capitalization: | C$239.68 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
