Reunion Gold Corporation (TSX-V:RGD, OTCQB:RGDFF) has announced a bought deal financing of C$20.02 million to be used to advance its projects.
The explorer has struck a deal with a syndicate of underwriters led by Sprott Capital Partners and co-lead Paradigm Capital Inc concerning the financing, which will see the issue of 77 million units at C$0.26 each.
Each unit will consist of one company share and one-half of a share purchase warrant, with each whole warrant allowing the bearer to buy one share at an exercise price of C$0.39 for 24 months following closing.
There is an option for the company to accelerate the expiry of the warrants.
READ: Reunion Gold finds 'significant' depth extension with ongoing drilling at Oko West in Guyana
In addition, Reunion said it will grant the underwriters an over-allotment option, exercisable in whole or in part at any time and from time to time, up to 72 hours prior to closing the offering, to buy up to an additional number of offered securities equal to 15% of those offered on the same terms as above.
"The net proceeds from the offering will be used for exploration expenditures on the company's projects and for general corporate and working capital purposes," the firm said in a brief statement.
The offer is expected to close on or about July 6, 2022, or such other date as agreed between the company and the underwriters.
All securities issued will have a hold period of four months and one day.
Reunion Gold Corp is exploring in the Guiana Shield, South America, with a portfolio of projects in Guyana, Suriname and French Guiana.
In 2021, it made a new gold discovery at its Oko West project in Guyana, where to date it has outlined continuous gold mineralization at the Kairuni zone over 2,500 metres (m) of strike and to a depth of 575m.
Contact the author at giles@proactiveinvestors.com