Reunion Gold To Sell its Matthews Ridge Manganese Project

LONGUEUIL - Reunion Gold Corporation has entered into an agreement to sell all of its rights, title and interest in the Matthews Ridge manganese project to Bosai Minerals Group Co., Ltd., an arm's length Chinese corporation. Under the terms of the agreement, Bosai will pay to Reunion a total amount of US$10 million of which US$5 million is payable at closing and US$5 million is to be paid at the rate of US$2.00 per tonne of manganese concentrate or ore shipped from Matthews Ridge once it enters into production.

Pursuant to the agreement, Reunion agreed to transfer to Bosai the four prospecting licenses (which make up the Matthews Ridge project), the March 2011 Mineral Agreement between Reunion, the Co-Operative Republic of Guyana and the Guyana Geology & Mines Commission (GGMC), and capital assets located at Matthews Ridge.

The closing of the sale of the Matthews Ridge project is subject to having obtained all required regulatory, shareholders and government approvals and consents, including the approval of the TSX Venture Exchange and the consent of the GGMC and the government of the Co-Operative Republic of Guyana. 

Reunion intends to continue to focus its exploration in the Guiana Shield of South America, and more specifically on early-stage gold projects. To that effect, Reunion announced that it had entered into a non-binding letter of intent with Union Miniere de Saul (UMS), an arm's length private company, pursuant to which UMS would grant to Reunion an option to acquire an 80% interest in the Haute Mana gold project in French Guiana, South America.