EURO Resources Invests US$7.15M to Acquire Silver Stream

PRESS RELEASE Paris: EUR

EURO RESSOURCES INVESTS US$7.15 MILLION TO ACQUIRE
MONEY FLOW ON THE BOMBORED OREZONE GOLD PROJECT

Paris, France, March 1, 2021: EURO Resources SA (“EURO” or “the Company”) (Paris: EUR) is pleased to announce today that it has entered into a binding letter of intent with Orezone Gold Corporation (“Orezone”) to acquire 50% of the payable silver production (the “Silver Stream”) at Orezone’s Bomboré Project (“Bomboré”), located in Burkina Faso, West Africa , for $7,150,000.

Bomboré is one of the largest unmined gold deposits in Burkina Faso. The 2019 feasibility study highlights Bomboré as an attractive, shovel-ready gold project with an expected annual gold production of 118,000 ounces over a mine life of over 13 years. Assay data and metallurgical studies suggest that there is a silver component to the Bombore deposit, with EURO’s review of assay data indicating that the silver to gold ratio is approximately 1:1.

The Silver Stream allows EURO to receive 50% of the silver production payable over the life of the mine. The agreement also includes a guaranteed minimum delivery obligation in favor of EURO of 37,500 ounces of silver per year, until delivery of 375,000 payable ounces of silver.

Transaction Highlights

  • Expanded Asset Base and Short-Term Cash Flow: Orezone is fully funded for the construction of Bomboré with the first gold pour scheduled for the third quarter of 2022.
  • Long life, low cost operation: The 2019 feasibility study described a 13.3-year operation at Bomboré producing a total of approximately 1.6 Moz of gold at an All-In Sustaining Cost (AISC) of $730/oz with an AISC of 672 USD/oz in the first ten years. Historical assay data indicated a silver to gold ratio of approximately 1:1. EURO will receive 50% of the silver production payable to Bomboré over the life of the mine.
  • Exploration and expansion potential: EURO will benefit from the future expansion of the Bomboré project, which has been designed by Orezone to accommodate future throughput expansion. Significant exploration potential exists around Bomboré, which includes several mining exploration permits totaling approximately 14,934 hectares, which has the potential to extend the mine life beyond the 13.3 years described in the report. 2019 feasibility study.

Money Flow Conditions

The definitive silver purchase agreement (the “Stream Agreement”) will be entered into with Orezone’s subsidiary in Burkina Faso. In accordance with the terms of the broadcast agreement:

EURO will make a cash payment of $7,150,000 to Orezone upon stream close (defined below) in return for purchasing 50% of the payable silver produced at Bomboré for the life of the mine.

  • Orezone has granted a payment guarantee in favor of EURO to secure its obligations under Silver Steam which will require Orezone to provide a minimum annual payment, from the date of declaration of commercial production by Orezone, equivalent to 37,500 ounces of silver. In the event of a shortfall in annual silver deliveries, to the extent that a catch-up payment is required, Orezone will make an initial catch-up payment only on the later of the following dates: (a) the fifth anniversary from the date of the initial delivery of cash under the stream agreement and (b) the repayment of the senior secured term loan for the Bomboré development to ensure that the aggregate minimum annual payment has been satisfied for each of the previous years. Thereafter, Orezone will only be required to make catch-up payments on an annual basis until 375,000 ounces of silver have been delivered or paid for, after which time the minimum annual payment guarantee will no longer apply.
  • If, during the first five years of mine life, the Bomboré processing plant achieves an average sulphide ore production rate of 3,300,000 tpy, Orezone has the right to buy back 50% of the Silver Stream from EURO for US$7,150,000.
  • EURO has a right of first refusal, for the life of the mine, on any other silver production from Bomboré that has not been purchased by EURO in accordance with the Silver Stream.
  • The realization of the Silver Stream is subject to the usual conditions precedent for a transaction of this nature.

Expected closing

The acquisition of the Silver Stream is expected to close in the second quarter of 2021 (“Stream Closing”) and EURO intends to fund the $7,150,000 investment with current cash on hand.

Bombore Project

Orezone Gold Corporation (TSX.V: ORE OTCQX: ORZCF) is a Canadian development company that 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 an expected annual gold production of 118,000 ounces over a mine life of over 13 years at an AISC of US$730/oz with an after-tax payback period of 2.5 years at an assumed rate. gold price of US$1,300/oz. Bomboré is supported by a mineral resource base of over 5 million ounces of gold and has significant expansion potential.

Orezone plans to develop Bomboré in two phases: Phase 1 is focused on free-dig oxides as a CIL operation with no crushing and minimal milling with average recoveries of 87% and Phase 2, which is expected to begin in the third year of mining, focus on the underlying high grade sulphides with a separate crushing and grinding circuit with additional feed to the same CIL circuit as the oxides. This phased expansion will reduce initial capital and increase annual production and recovered ounces over the life of mine.

For more information on Bombore, please visit www.orezone.com.

About the EURO

EURO is a French company whose principal assets are a royalty on production from the Rosebel gold mine 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 operated by IAMGOLD. The Paul Isnard Concession Royalty is a net smelter production royalty on future production from the Paul Isnard Concessions and an area of ​​interest surrounding the concessions in French Guiana, held under a joint venture agreement between Orea Mining Corp. . and North Gold SE.

EURO has approximately 62.5 million shares outstanding. As of January 31, 2021, IAMGOLD France SAS (“IAMGOLD France”), an indirect wholly-owned subsidiary of IAMGOLD, held approximately 89.71% of all outstanding issued shares of EURO. As of January 31, 2021, IAMGOLD France held 56,058,191 shares representing 112,116,382 voting rights, or 94.25% of EURO’s voting rights. This threshold crossing results from an allocation of double voting rights.

Statements regarding forward-looking information: Certain statements contained in this press 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 news services or for dissemination in the United States. The titles referred to herein have not been registered in 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 United States person absent registration or an applicable exemption from the registration requirements of the Securities Act.

Additional information relating to EURO Ressources SA is available on SEDAR at www.sedar.com. Any other request for information should be sent to:

About Wilhelmina Go

Check Also

Another online money lending racket broke out in Hyderabad; Chinese national, 3 other detainees

Cyberabad police in Hyderabad on Friday busted another online money lending racket and arrested four …