G Mining Ventures falls on combination with Reunion Gold

Reunion Gold

22/04/2024 16:00

** Shares of Canadian mining firm G Mining Ventures
 GMIN.TO  down 16.7% at C$1.9 
    ** GMIN to combine with Canadian peer Reunion Gold  RGD.V 
and will acquire Oko West project in Guyana via the combination 
    ** Under the terms of the deal, RGD shareholders to receive
0.285 GMIN shares per RGD share, and GMIN and RGD shareholders
to own 57% and 43% of the combined company, respectively
    ** La Mancha Resource Capital and Franco-Nevada  FNV.TO  to
provide concurrent $50 mln equity financing 
    ** RGD's other assets to be held by a newly created gold
exploration company, with the combined company owning a 19.9%
stake in the spun-off firm and RGD shareholders owning a 80.1%
stake 
    ** Deal expected to close in Q3 2024
    ** Reunion Gold up 8% at 0.5 cents, after hitting a roughly
12-year high earlier during the session 
    ** GMIN up ~34% YTD, RGD up ~27% YTD

 (Reporting by Kabir Dweit)
 ((Kabir.Dweit@thomsonreuters.com;))