PRECIOUS METALS

France lodges 'final appeal' over Montagne d'Or

The French government is continuing to oppose Orea Mining and Nord Gold's proposed Montagne d'Or joint venture gold mine in French Guiana.

Staff reporter
 Image: Pixabay/Ajel

Image: Pixabay/Ajel

The government has filed a final appeal over the renewal of the Montagne d'Or mining titles, Orea said last week.

The company, which owns 44.9% of the JV, said the Supreme Court would conduct an analysis on whether to admit or reject to hear the government's final appeal.

In July, the Court of Appeal of Bordeaux had rejected a government appeal and its request for a stay of execution of the initial court ruling which was in favour of the JV, ordering the renewal of the mining titles. 

The government had until September 17 to file a second and final appeal.

"In principle, an appeal before the Supreme Court has no suspensive effect, therefore the initial court rulings should in theory, be upheld and implemented, even if a final appeal is made," Orea said last week.

The company recently announced an optimised project design to reduce the environmental impact of the proposed project, included a reduced surface footprint and on-site hybrid power plant which would reduce carbon dioxide emissions.

The mine would produce an average 237,000 ounces of gold annually over the first 10 years of a 12-year life, according to a 2017 bankable feasibility study, which put initial capex at US$361 million, after-tax NPV5 at $370 million and IRR at 18.7%.

Elsewhere, Orea is looking to acquire a new gold project in Suriname and said last month due diligence was "near completion".

Iamgold and Nord Gold are its major shareholders with 9.3% and 8.2% respectively.

Orea shares (TSX: OREA) have spanned C8-31c over the past year and closed up almost 19% on Friday to 22c, capitalising it at $45 million (US$36 million).

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