REUNION GOLD ANNOUNCES CLOSING OF
TRANCHE 1 OF PRIVATE PLACEMENT FOR $3,145,000; SIZE OF FINANCING INCREASED TO
$5,250,000
Not
for distribution to United States newswire services or for dissemination in the
United States.
May 28,
2010. Longueuil, Qu?bec - Reunion Gold Corporation (TSX-V: RGD) ("Reunion"
or the "Company") is pleased to announce that it has closed a
first tranche of the non-brokered private placement announced on May 7, 2010
(the "Financing"). The Company has issued 31,450,000 units
("Units") at a price of $0.10 per Unit for gross proceeds of
$3,145,000. Each Unit consists of one common share of Reunion and one common
share purchase warrant ("Warrant"). Each Warrant may be
exercised for one additional common share at a price of $0.20 per common share
for a period of 24 months, subject to the Company's right to accelerate the
Warrant exercise. Insiders of the Company purchased an aggregate of
2,225,000 Units. No finder's fees or commissions were paid in connection with
the Financing.
In response to demand from investors, the Company has
increased the size of the Financing from $5,000,000 to $5,250,000. The increase
received the conditional approval of the TSX Venture Exchange ("TSXV")
on May 27, 2010. The Company expects to close the balance of the increased
Financing within the next two weeks.
Pursuant to applicable Canadian securities laws, the common
shares and warrants issued to subscribers under the Financing are subject to a
four-month hold period from the time of each applicable closing under the
Financing. The Financing is subject to certain conditions including, but not
limited to, the receipt of all necessary regulatory approvals, including the
final approval of the TSXV.
The Company intends to apply the net proceeds raised from the
Financing for general working capital including but not limited to funding the
Company's general and administrative expenses and providing a reserve for asset
acquisition.
Additional information about the Company is available
through regular filings and press releases on SEDAR and on the Company's
website at www.reuniongold.com.
.
Forward-Looking Information
This news release contains certain "forward-looking
information" under Canadian securities laws. All statements that address
future activities, events or developments that the Company believes, expects or
anticipates will or may occur are forward-looking information. Specifically,
this news release contains forward looking information about the Company's
plans to complete the balance of the private placement on the terms announced
and the possibility of acquiring new assets. Forward looking information is
based upon assumptions by management that are subject to known and unknown
risks and uncertainties beyond the Company's control, including risks related
to capital markets and the availability of financing for companies such as the
Company. There can be no assurance that outcomes anticipated in the forward
looking information will occur, and actual results may differ materially for a
variety of reasons. Accordingly, readers should not place undue reliance on
forward-looking information. The Company undertakes no obligation to update
publicly or otherwise revise any forward-looking information, except as may be
required by law.
"Neither 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 release."
For further information please
contact:
REUNION GOLD CORPORATION
James Crombie
President and Chief Executive Officer
Telephone:450.677.2585
Facsimile: 450.677.2601
Email: james_crombie@reuniongold.com
Website: www.reuniongold.com
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