The Canadian gold exploration and development company will pay Nordgold C$100m ($74m) once it has secured all permits and authorisations required for the development, operation, production and related sales of a mine that yields at least 100,000 ounces of gold annually
Nordgold to sell its 55.01% stake in Montagne d’Or to Orea Mining. (Credit: Chris Wiedenhoff from Pixabay)
Orea Mining has agreed to take full ownership of the Montagne d’Or project in French Guiana, France by acquiring the remaining 55.01% stake it didn’t own previously from its joint venture (JV) partner Nordgold.
The JV owns a full interest in the five-million-ounce open pit gold mine development project, which is in permitting stage.
As per the terms of the agreement, the JV has settled €24.6m that was owed to Nordgold with no cash outlays by Orea Mining.
Besides, Orea Mining is expected to pay C$100m ($74m) to the Russian gold mining company. This is after the former has secured all permits and authorisations required for the construction, operation, production, and related sales of a gold mine that yields at least 100,000 ounces annually.
The agreement has received the approval of DG Trésor, the French treasury, and the Office of Financial Sanctions Implementation (OFSI), the UK treasury.
The gold mining company is expected to close the transaction by 28 February 2023 following the final regulatory and administrative steps.
Following the transaction, Montagne d’Or’s existing board of directors has been dissolved and Orea Mining has appointed its own president to operate the company.
The Montagne d’Or project is estimated to have measured mineral resources of 10.3Mt at 1.804g/t gold (600,000 ounce).
The indicated mineral resources and additional inferred mineral resources of the project are estimated to be 74.8Mt at 1.350g/t gold (3.25 million ounce) and 20.2Mt at 1.48g/t gold (960,000 ounce), respectively.
Nordgold entered into legally binding letter agreement with Orea Mining to divest its stake in the JV in August 2022.