Post by
123buyholdhope on Feb 03, 2019 12:59pm
NG/CGT and Reunion's private placement
"LONGUEUIL, Quebec, Jan. 29, 2019 (GLOBE NEWSWIRE) -- Reunion Gold Corporation (TSX-V: RGD) (the “Company”) announces that it has revised the issue price of its previously announced private placement offering (see press releases of December 13 and 21, 2018) to raise up to $15 million at $0.15 per common share of the Company. The Company determined that the repricing was appropriate due to current market conditions. The Company anticipates closing the private placement on or about February 5, 2019 with the participation of Barrick Gold Corporation and Dundee Resources Limited as previously announced."
One has to think that this private placement by Reunion is a positive for CGT. Reunion, Barrick and Dundee must have done some ‘homework’ as regards their investments and the potential future of gold mining in French Guyana. They have been putting significant money into Reunion’s exploration program in FG and I assume do not expect it to hit a ‘dead end’ re a blocked pathway to future FG gold production.
As I have suggested in the past, the worst scenario for CGT (and others) is total denial of a mining permit and future FG gold mining; best, no major roadblocks placed on this new mine (or others). Further, a middle of the road possibility, to pacify the French green lobby and keep Macron’s green base together, could see clear limits on the CGT mine along with new limits/moratorium on future FG gold exploration/mining permits.
Would Barrick and Dundee be backing Reunion so forcefully (even factoring in Reunion’s other Guyana exploration) if they thought that CGT/NG would be denied, or even see a less severe moratorium block put on future FG gold projects?
We are still waiting for NG to produce their ESIS report which was supposed to have been submitted this past December 2018. Clearly, it is taking more time to meet via the report the FG concerns generated during the public discussion period. I would also expect that the French government would wait for this report before issuing their decisions re both CGT mine future and the future of gold mining in FG:
A report by the inter-ministerial mission (see news release dated November 27, 2018), is expected to be filed in the coming weeks. The mission is a joint ministerial task-force under the direction of the French Ministers of Environment, of Economy and Finance, and of Overseas Territories. Its purpose is to assess the social and economic benefits, and the impacts, of the development of the gold mining industry in French Guiana, taking into consideration in particular Montagne d'Or, the most advanced large gold project in French Guiana. Based on the conclusions and recommendations of the task-force’s report, the French Government, in close cooperation with the local authorities of French Guiana, will consider the conditions under which the gold mining industry in French Guiana will operate.
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