|NEWS RELEASE||Paris: EUR|
EURO RESSOURCES COMPLETES THE SILVER STREAM
TRANSACTION WITH OREZONE GOLD
Paris, France, October 18, 2021: EURO Ressources S.A. (“EURO” or “the Company”) (Paris: EUR) is pleased to announce the closing of its previously announced acquisition of a silver stream (the “Silver Stream”) from a subsidiary of Orezone Gold Corporation (“Orezone”).
The Silver Stream entitles EURO to receive 50% of the payable silver production over the life of mine on Orezone’s Bomboré Project (“Bomboré”), located in Burkina Faso, West Africa. The Silver Stream also stipulates a minimum guaranteed delivery obligation in favour of EURO of 37,500 ounces of silver per annum, until delivery of 375,000 ounces of payable silver.
Full details of the transaction can be found in EURO’s news release dated March 1, 2021.
The Bomboré Project
Orezone Gold Corporation (OTCQX:ORZCF) is a Canadian development company which owns a 90% interest in Bomboré, one of the largest undeveloped gold deposits in Burkina Faso. The 2019 feasibility study highlights Bomboré as an attractive shovel-ready gold project with forecasted annual gold production of 118,000 ounces over a 13+ year mine life at an AISC of US$730/ounce with an after-tax payback period of 2.5 years at an assumed gold price of US$1,300/ounce. Assay data and metallurgical studies suggest there is a silver component to the Bomboré deposit, with EURO’s review of assay data indicating that the average silver grade is in the region of 1 g/t and that the silver to gold ratio is approximately 1:1. Bomboré is underpinned by a mineral resource base in excess of 5 million ounces of gold and possesses significant expansion potential.
Orezone plans to develop Bomboré in two stages: Stage 1 is focused on the Free Dig Oxides as a CIL operation with no crushing and minimal grinding with average recoveries of 87%; and Stage 2 will focus on the underlying higher-grade sulphides with a separate crushing and grinding circuit feeding the same CIL circuit as the oxides. This will reduce upfront capital and increase annual production and recovered ounces over the life of mine.
For more information on Bomboré, please visit www.orezone.com.
EURO is a French company whose main assets are a royalty on the Rosebel gold mine production in Suriname (the “Rosebel royalty”), a royalty on the Paul Isnard concessions, and marketable securities. The Rosebel gold mine is 95%-owned by IAMGOLD Corporation (“IAMGOLD”), and is operated by IAMGOLD. The royalty on the Paul Isnard concessions is a net smelter returns production royalty on future production of the Paul Isnard concessions and an area of interest surrounding the concessions in French Guiana, owned under a joint venture agreement between Orea Mining Corp. and Nord Gold SE.
EURO has approximately 62.5 million shares outstanding. At September 30, 2021, IAMGOLD France S.A.S. (“IAMGOLD France”), an indirect wholly owned subsidiary of IAMGOLD, owned approximately 89.71% of all issued outstanding shares of EURO. As at September 30, 2021, IAMGOLD France held 56,058,191 shares representing 112,116,382 voting rights or 94.25% of the voting rights of EURO. This threshold crossing results from a double voting rights allocation.
Statements Regarding Forward-Looking Information: Some statements in this news release are forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties. There can be no assurance that future developments affecting the Company will be those anticipated by management.
Not for distribution to United States newswire services or for dissemination in the United States. The securities referred to herein have not been registered under the United States Securities Act of 1933, as amended (the Securities Act), and may not be offered or sold in the United States or to a U.S. person absent registration, or an applicable exemption from the registration requirements of the Securities Act.
Additional information relating to EURO Ressources S.A. is available on SEDAR at www.sedar.com. Further requests for information should be addressed to: