FOR THE THREE MONTHS ENDED
FOR THE THREE MONTHS ENDED JUNE 30, 2022
The following interim management's discussion and analysis - quarterly highlights ("Interim MD&A ") of Reunion Gold Corporation ("Reunion Gold " or the "Company ") for the three months ended June 30, 2022 provides material information about the Company's business activities during the interim period and updates disclosure previously provided in the Company's management's discussion and analysis for the financial year ended December 31, 2021 ("Annual MD&A ").
This Interim MD&A should be read in conjunction with the Company's unaudited condensed interim consolidated financial statements and related notes for the three and six months ended June 30, 2022 (the "Interim Financial Statements "), the Company's audited consolidated financial statements for the years ended December 31, 2021 and 2020 (the "Annual Financial Statements "), and the Company's Annual MD&A, including the section describing risks and uncertainties.
The effective date of this Interim MD&A is August 16, 2022.
All financial results presented in this Interim MD&A are expressed in Canadian dollars unless otherwise indicated.
Reunion Gold is a Canadian-based company focused on acquiring, exploring and developing mineral projects located in the Guiana Shield region of South America. The Company has entered into agreements entitling it to acquire an interest in various gold exploration projects in Guyana, Suriname and French Guiana. Its principal projects are Oko West in Guyana, NW Extension in Suriname, and Boulanger in French Guiana. The NW Extension project is part of a 50-50 strategic alliance entered into with Barrick Gold Corporation ("Barrick ") in February 2019.
Reunion Gold's common shares trade on the TSX Venture Exchange ("TSXV ") under the symbol RGD and on the OTCQB Venture Market under the symbol RGDFF. As of August 16, 2022, the Company has 986,517,168 issued and outstanding common shares.
Highlights for Q2 2022 and events after June 30, 2022
The Oko West Project is in the Cuyuni Mining District in Guyana, and it covers an area of 10,880 acres. The Company has option agreements with Guyanese titleholders to acquire a 100% ownership interest over the project area.
Since April 1, 2022, the Company has drilled 60 diamond drill holes for 12,410 meters and 38 reverse circulation holes for 2,959 meters at the Oko West Project. In press releases dated May 4, 2022 and June 13, 2022, the Company released additional strong drill results from the current campaign focused on the 2.5 km- long Kairuni zone, including the "Chairman's hole" (hole D22-112) which successfully tested the depth extension of the Kairuni zone with a significant interval to a vertical depth of 575 meters. All drilling results can be consulted on the Company's website (www.reuniongold.com ).
During the period, the Company added a second UDR 200 self-propelled diamond drill rig to accelerate the pace of drilling and enhance the Company's ability to drill deeper holes. The Company has one other conventional-type diamond drill rig and one reverse circulation (RC) drill rig working at Oko West.
The Company continues the detailed mapping and sampling program on the 3.5 km long Takutu zone south of the Kairuni zone and has identified several outcrops of mineralized sheared rocks. Scout drilling of this area with a reverse circulation rig is underway. The Company is using the topographic information from a recently acquired LiDAR survey on its mapping programs.
The Company has also undertaken a number of construction projects during the period to increase the capacity of the camp facilities to accommodate up to 70 workers and to increase core cutting capacity, core storage facility and fuel storage capacity.
Three field missions led by Environmental Resources Management (ERM) were conducted in June and July 2022, with the objective of completing an initial environmental baseline study covering the wet-season terrestrial and aquatic biodiversity, surface and groundwater quality and soil sampling. The dry-season surveys are planned for the month of September and the final report for this phase is expected to be completed by the end of 2022.
In July 2022, the Company amended its option agreement with one of the two Oko West titleholders and advanced the payments that were due in August 2022 and August 2023, representing a total amount of US$300,000.
The NW Extension Project, comprising three rights of exploration totalling 925 square kilometers, is located 60 kilometers to the west-southwest of Paramaribo in Suriname. The Company has an option to acquire a 100% interest in the project, which is part of the strategic alliance with Barrick.
A total of 1,901 meters in 30 holes were completed on three drill fences before the program was suspended in mid-March 2022 due to exceptional precipitation and deteriorated access to the project area. The Company and Barrick are reviewing a follow-up exploration program that may be undertaken when ground conditions have improved and required equipment and personnel are available.
The Boulanger Project is currently on care and maintenance. On July 28, 2022, the French "Conseil d´Etat " ruled in favor of a non-governmental organization's administrative procedure initiated in 2021 on the grounds
that the French government had exceeded its power by renewing the four Boulanger concessions. Pursuant to the decision of the Conseil d'Etat , the four decrees under which he Boulanger concessions had been renewed were annulled. Compagnie Minière de Boulanger, the titleholder of the mining concessions, intends to submit amended renewal applications, to include among others, an environmental and social baseline study to comply with the recently amended Mining Code. Although the Company is entitled to pursue its exploration activities at the Boulanger Project under the original mining concessions, it currently does not intend to conduct a work program until the concessions are renewed. There can be no assurance as to if and when the concessions will be renewed.
Carlos H. Bertoni, P. Geo., the Company's Interim CEO and a qualified person pursuant to National Instrument 43-101, has reviewed and approved the scientific and technical data contained in this Interim MD&A.
Bought deal private placement - July 8, 2022
On July 8, 2022, the Company completed a bought deal private placement (the "Bought Deal ") of units of the Company (the "Units ") underwritten by Sprott Capital Partners LP and Paradigm Capital Inc., as co-lead underwriters, on behalf of a syndicate of underwriters comprised of Cormark Securities Inc., iA Private Wealth Inc. and Dundee Goodman Merchant Partners, a division of Goodman & Company, Investment Counsel Inc. (collectively with the Co-Lead Underwriters, the "Underwriters "). Concurrently with the Bought Deal, the Company also closed a non-brokered private placement of Units with Dundee Resources Limited, a 16.3% shareholder of the Company, on the same terms as the Units issued and sold under the Bought Deal (the "Concurrent Financing " and collectively with the Bought Deal, the "Offering "). Pursuant to the Offering, the Company issued 141,648,349 Units at a price of $0.26 per Unit, including 23,500,000 Units issued pursuant to the Concurrent Financing, for total gross proceeds of $36,828,570.
Each Unit consists of one common share in the capital of the Company and one-half of one Common Share purchase warrant of the Company (each whole warrant, a "Warrant "). Each Warrant entitles the holder thereof to purchase one common share at an exercise price of $0.39 until July 8, 2024, provided that if the volume weighted average closing price of the common shares of the Company on the TSXV or such other stock exchange on which the common shares are traded is equal to or greater than $0.55 for a period of 10 consecutive trading days, the Company may elect to accelerate the expiry of the Warrants at its option.
As compensation for the Underwriters' services rendered in connection with the Bought Deal, the Company paid to the Underwriters a cash fee of $1,835,314 and issued to the Underwriters an aggregate of 7,058,900 non-transferable broker warrants. Each broker warrant entitles the holder thereof to purchase one common share at an exercise price of $0.26 until July 8, 2024.
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Reunion Gold Corporation published this content on 18 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 August 2022 19:53:08 UTC.