|By Marketwired .||
|September 16, 2013 09:05 AM EDT|
LONGUEUIL, CANADA -- (Marketwired) -- 09/16/13 -- Reunion Gold Corporation (TSX VENTURE:RGD) (the "Company") announces that the Company and Grasshopper Aluminum Company N.V. ("Grassalco") have terminated the option agreement under which the Company was entitled to acquire from Grassalco the Lely gold project in Suriname. In consideration for the early termination, Grassalco paid to the Company a gross amount of $5.2 million, which amount represents the exploration costs spent by the Company on the project since 2007. The Company intends to use the funds received to initiate work required towards the completion of a full feasibility study on its Matthews Ridge manganese project in Guyana, for working capital, and general corporate purposes.
About the Company
Reunion Gold Corporation, through its 100% owned subsidiary Reunion Manganese Inc., has assembled a large, strategic land position to conduct exploration and development activities for manganese in the North West District of Guyana. The Company announced an initial resource estimate for its Matthews Ridge manganese project in February 2013 and the results of a pre-feasibility study in July 2013. Manganese is the fourth largest metal consumed in the world, behind iron, aluminum and copper. It is a key component in steel and iron production with no viable substitute.
Forward looking statements
This press release contains statements that are 'forward-looking information' under Canadian securities laws. Forward looking information refers to statements about possible events, conditions or results of operations that are based on assumptions about future economic and technical conditions and courses of action. Forward looking information in this news release includes statements about the intended used of the funds and plans to prepare a full feasibility study. Factors that can impact the Company's ability to complete the feasibility study include the inability to raise the funds necessary to complete the study; the actual results of development activities and conclusions of economic evaluations; changes in project parameters as plans continue to be refined; and general business, economic, competitive, political and social uncertainties. The Company can give no assurance that the forward looking information will prove to be correct. Therefore, readers should not place undue reliance on the forward looking information.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.