Orea Mining (TSX: OREA) (OTCQB: OREAF) inked a definitive agreement to acquire Nordgold’s 55.01 per cent interest in the Montagne d’Or joint-venture in French Guiana, France.
Montagne d’Or is an open pit gold mine development project with measured mineral resources of 10.3 MT at 1.804 g/t gold (600,000 oz), as well as indicated mineral resources of 74.8 Mt at 1.350 g/t (3.25 million oz) and additional inferred mineral resources of 20.2 Mt at 1.48 g/t gold (960,000 oz). The resources are confined in a pit shell and defined by a gold price of US$1,300 per oz and a minimum grade of 0.4 g/t gold.
Also, mineral reserves have been defined with proven mineral reserves of 8.25 Mt at 1.99 g/t gold (530,000 oz) and probable mineral reserves of 45.87 Mt at 1.50 g/t gold (2.2 M oz). Both the proven and probable mineral reserves were estimated using a base gold price of US$1,200 per ounce with cut-off rates from 0.552 to 0.665 g/t gold, dependent on rock types, economics and estimated metallurgical recovery.
Orea Mining takes complete control over Montagne d’Or
Orea Mining is a gold explorer working in the prospective and underexplored Guiana Shield, South America. It develops gold deposits with an eye towards environmental responsibility using innovative tech.
Montagne d’Or sports excellent grade and metallurgy, and potential to increase ounces by both infill and expansion drilling. The JV holds 100 per cent of the Montagne d’Or 5 million ounce open pit gold mine project. Montagne d’Or.
Orea has dissolved the joint venture’s previous board of directors and appointed its own president. Now Orea is taking the final steps to close the deal, including transferring Nordgold’s shares in the JV to Orea. This will be complete by February 28, 2023.
The previous members of the joint venture agreement to settle the 24.6 million Euro (CAD$35.6 million) debt owned to Nordgold with no cash outlays by Orea. Additionally, Orea’s financial obligations to Nordgold include CAD$100 million when Orea gets all the permits and authorizations for a mine that produces 100,000 ounces of gold per year.
If Nordgold’s shareholders are still under sanctions when the payment goes through the funds will be processed using alternative means. These include being paid to a blocked bank account.
The two companies signed the agreement with the approval of the French treasury. The treasury is responsible for overseeing matters related to Russian sanctions. The UK treasury and the United States treasury have also been kept informed of all developments.
Additionally Orea announced that Andrew Yau will resign as executive vice president and chief financial officer. He will stay with Orea until March 15, 2023 so Orea can find a native French speaker to replace him. The company believes that a French speaking CFO is essential to the permitting process.