Currently viewing Global edition

French gov gives all clear for Orea's Russian deal

Orea Mining has got the green light from the French government for its proposed acquisition of Russian Nord Gold’s majority interest in the Montagne d’Or joint venture company in French Guiana.
French gov gives all clear for Orea's Russian deal French gov gives all clear for Orea's Russian deal French gov gives all clear for Orea's Russian deal French gov gives all clear for Orea's Russian deal French gov gives all clear for Orea's Russian deal

Gold-bullion-GFMS-Refinitiv.jpg

The Toronto-listed junior has been negotiating with the sanctioned Moscow-headquartered company on obtaining its 55.01% stake in the JV to take Orea's interest to 100%.

The two have a binding letter agreement which includes no up-front payments.

"Consideration is entirely at the back-end, whereby Orea will only be obligated to pay Nordgold C$100 million when Orea receives all permits and authorisations necessary for the construction, operation, production and related sales of a mine that produces a minimum of 100,000 ounces of gold per year," Orea said.

"If Nordgold's shareholders are still under sanctions at the time of the C$100 million (US$75.85 million) payment, then the funds will only be processed in compliance with applicable sanction regulations, including being paid to a blocked bank account," it said.

Montagne d'Or is a permitting stage, five-million-ounce open pit gold mine development project.

Orea's share price was C$0.09 on 14 September, having risen by 6% day on day. The company had a market capitalisation of C$19.48 million.