Barrick Gold Corp. agreed to acquire about a 15% interest in Reunion Gold Corp. for gross proceeds of about C$9.1 million.
Reunion Gold said Nov. 27 that it will undertake a private placement of 48 million common shares at 19 cents apiece to the gold major, with closing anticipated on or around Nov. 30.
As long as it maintains a 10% stake in the company, Barrick will have a right to participate in any future equity financing by Reunion to maintain its ownership.
Barrick will also have rights to nominate a director to the Reunion board and to assign one or more geologists to work full time on any or all of Reunion's projects as well as a right of first refusal on any sale by Reunion of any interest in its projects. Barrick will also be subject to certain standstill restrictions for two years.
Reunion will use the proceeds primarily for exploration and development of its projects. The company has a majority stake in the Yaou-Dorlin gold mine and the early stage Haute-Mana gold property, both in French Guiana.
