In response to erroneous perceptions published in a section of the local press, Reunion Gold Corporation issued a detailed statement clarifying its decision to sell a majority stake in its Guyana gold project just days after signing an agreement with the government.
The media agency had raised concerns regarding the timing and motives behind the sale, prompting Reunion Gold to provide comprehensive insights into its strategic move.
One of the main concerns was the timing of Reunion Gold’s decision to divest 57% of its shares in the Guyana gold project to G Mining Ventures Corporation, just days after disclosing the signing of a Mineral Agreement with the Government of Guyana. The publication sought clarity on whether there were undisclosed factors influencing the transaction and whether it aligned with the company’s long-term objectives.
In response, Reunion Gold said the sale was part of a broader strategy aimed at de-risking the Oko West project and expediting its progression towards production. By partnering with G Mining Ventures Corporation, Reunion Gold said it aims to leverage the expertise and financial resources of a reputable player in the industry to accelerate the project’s development.
“The combination with G Mining Ventures is an important step in advancing the Oko West project to production,” it noted. In addition it said,”We are committed to minimizing environmental impacts, positively impacting the communities we work in, and providing lasting benefits for Guyana.”
To provide context, it’s essential to understand Reunion Gold’s journey in the Guyanese mining landscape. The company’s acquisition of the Oko West Project in 2018 marked the beginning of an ambitious exploration and development campaign. Through meticulous exploration efforts and strategic partnerships, Reunion Gold has made significant discoveries and established itself as a key player in the region’s mining sector.
According to Reunion, the decision to combine forces with G Mining Ventures Corporation represents a strategic milestone for both companies. By pooling resources and expertise, they aim to establish a leading intermediate gold producer in the Guiana Shield region. The acquisition it said, underscores the strategic importance of the Oko West project and highlights the potential for significant value creation in the coming years.
Looking ahead, Reunion Gold said it remains steadfast in its commitment to advancing the Oko West project towards production. With the support of G Mining Ventures Corporation, the company said it aims to expedite technical studies and move closer to a construction decision.
