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Reunion Gold closes Matthews Ridge manganese project sale

Reunion Gold Corp. completed the previously announced sale of its Matthews Ridge manganese project in Guyana to Chinese firm Bosai Minerals Group Co. Ltd.

As consideration, Reunion Gold received US$5 million at closing, it said Feb. 1.

An additional US$5 million will be paid at the rate of US$2 per tonne of manganese concentrate or ore shipped from Matthews Ridge once it begins production.

Reunion Gold intends to use the proceeds from the sale to acquire and explore gold projects located in the Guiana Shield of South America and to settle its working capital deficit.