Reunion Gold Corporation, a mineral exploration company focused on acquiring mineral projects in the Guiana Shield region of South America is selling its Matthews Ridge manganese project to Bosai Minerals Group Co., Ltd.
According to a statement from the Canadian company, the sale of its project has been accepted by the Co-Operative Republic of Guyana, the Guyana Geology & Mines Commission and the TSX Venture Exchange.
The transaction is expected to close on or about February 3, 2017.
The transaction was also approved by the Company’s shareholders by way of written consents signed by shareholders holding approximately 74% of the common shares issued and outstanding.
In April 2016, it was reported that as a result of low world prices, the manganese mining operation at Matthews Ridge, Region One, will be affected. The company at that time was granted a two-year extension on its licencing obligations by the Guyana Geology and Mines Commission (GGMC) ending April 30, 2018
The company has a 25-year agreement with the Government of Guyana for the development of the manganese operation. However, it said “there can be no assurance that the company will be able to complete a financing or other type of arrangement to fund its ongoing obligations and develop its Matthews Ridge project”.
Executive Chairman of Reunion Manganese Incorporated, David Fennell also paid a courtesy call to President David Granger where he gave an update on the company’s operation at Matthews Ridge operation.
Reunion commenced exploration in October 2010 with the objective of delineating substantial manganese resources in and around the Matthews Ridge deposits. Reunion’s operations are located on the site of the abandoned Matthews Ridge Manganese Mine which was operated by a subsidiary of Union Carbide Corporation from 1962 to 1968.
The Company announced on December 2, 2016 that it had entered into an option agreement to acquire an 80% interest in the Haute Mana gold project in French Guiana. The option is subject to certain conditions including the approval of the TSX Venture Exchange.
