Reunion Gold Corporation has signed a non-binding letter of intent with Union Minière de Saül (UMS) to acquire an 80% interest in the Haute Mana gold project in French Guiana, South America.
The letter of intent states all general terms and conditions that UMS will allow Reunion the option to buy an 80% stake in the gold project.
Reunion is entitled to complete an economic assessment of this project and exercise the option within five years.
A formal option agreement will supersede this letter of intent.
The transaction is subject to customary procedures and regulatory approvals that include permission from TSX Venture Exchange.
Reunion will assess various financing options for this deal.
The Haute Mana gold project covers an area of 121.5km², comprising eight mining concessions.
It is located in the central-south part of French Guiana, around 170km from the capital city of Cayenne. The mine can be accessed through aircraft and a forest trail.
The region is underlain by a Proterozoic greenstone belt composed of volcano-sedimentary sequences impinged by granitoids.
This mine is known as one of the most productive gold producing areas in French Guiana.
The whole region was explored and mapped by the Bureau de Recherches Géologiques et Minières (BRGM) in the 1980s.
The department conducted further exploration work in the area in the 1990s that included a 79km stretch of soil sampling and 1,224m of diamond drilling.
The concession area is considered to have strong potential for ‘shear-type’ gold mineralisation.