08:16 AM EDT, 06/13/2024 (MT Newswires) -- G Mining Ventures ( GMINF ) and Reunion Gold ( RGDFF ) said on Thursday that their boards are recommending shareholders support the companies' proposed merger.

Shareholders will vote on the transaction in separate meetings on July 9.

Under the terms, a new entity will be incorporated to hold and manage the combined businesses of G Mining ( GMINF ) and Reunion Gold ( RGDFF ).

For each share owned, G Mining ( GMINF ) shareholders will receive 0.25 of a share of the new G Mining ( GMINF ) stock. Reunion Gold ( RGDFF ) shareholders will receive 0.07125 of a new G Mining ( GMINF ) share and 0.05 of a share of a spinout company for each Reunion Gold ( RGDFF ) share held.

The spinout company will hold the assets of Reunion Gold ( RGDFF ) except for the Oko West project in Guyana and $15 million in cash that G Mining ( GMINF ) is funding.

Existing G Mining ( GMINF ) and Reunion Gold ( RGDFF ) shareholders will own about 57% and 43%, respectively, of the new G Mining ( GMINF ). The new G Mining ( GMINF ) and Reunion Gold ( RGDFF ) shareholders will own 20% and 80%, respectively, of the spinout company.