PARIS & TORONTO, March 25 /CNW/ - EURO Ressources S.A. ("EURO") (TSX:
EUR) (Paris: EUR) announces that it has entered into a memorandum of
understanding with Golden Star Resources Ltd. ("Golden Star") (TSX: GSC; AMEX
GSS) regarding an amendment to the previous agreement with Golden Star on the
Paul Isnard concessions and PER (the "Properties") held by EURO in French
Highlights of the terms of the agreement are:
-- EURO will receive royalty payments from production on the Properties
calculated as to:
-- 10% on the first 2 million ounces of production
-- 5% on the next 3 million ounces of production
in both cases multiplied by the Market Price of Gold in excess of
-- By November 2007, Golden Star will spend EUR 1,215,000 on the Paul
Isnard exploration permit held by EURO.
-- Golden Star undertakes to complete a feasibility study on at least
one project on the Properties within 12 months.
-- Subject to a positive feasibility study, Golden Star will commence
commercial production within 30 months.
-- In the event of commercial production being delayed, Golden Star will
pay advance royalties of $1,000,000 per annum.
-- Golden Star confirms the full forgiveness of the remaining $8.5
million of debt that was outstanding from EURO's reorganization in 2004.
James H. Dunnett, Directeur-General of EURO, commented: "We are most
pleased that Golden Star has been able to make the commitments required to
move the Paul Isnard Properties forward with an active exploration program and
prospective production. A royalty on production is entirely in keeping with
our intention to focus on this type of exposure to the gold price with a high
quality operator such as Golden Star. I believe this is good news for French
Guiana and excellent news for our shareholders who have waited patiently for
progress on Paul Isnard."
Additionally, Golden Star has granted an option to EURO to purchase the
residual payment obligation due by EURO to Golden Star under the Rosebel
Royalty purchase agreement. This Option is for a cash payment of $4,150,000 on
or before June 30, 2007 with a right to extend the option period to December
EURO's Directeur-General, James H Dunnett, stated: "These additional
purchase payments to Golden Star are related to future production from
Rosebel. Although payment is not expected to commence until 2010 or later, the
total obligations could amount to $30 million with full production of the 7
million ounces of the Rosebel Royalty. We are pleased we have been able to
agree on a fixed amount for early payment, particularly with the continuing
increase in resources at Rosebel."
EURO also announces that IAMGold Corporation ("IAMGold") (TSX: IMG; NYSE:
IAG) has confirmed its intention to consider increasing production at the
Rosebel gold mine to 400,000 ounces of gold production per year.
In a letter to EURO dated March 20, 2007, Joe Conway, IAMGold's President
and CEO, is quoted as stating, in respect of the Rosebel gold mine, "We are
looking at an expansion scenario and in the second half of the year we should
be in a position to make a decision on whether to increase throughput and take
production from 300,000 ounces to 400,000 ounces per year".
IAMGold also clarified in its letter that the $25 million in budgeted
capital expenditures for Rosebel in the 2007 year referred to in the
conference telephone call held March 15, 2007 is not related solely to costs
associated with the expansion of the Rosebel mine but includes costs relating
to capitalized exploration expenses. IAMGold further confirmed in its letter
that any decision to proceed with the Rosebel expansion is subject to a
positive feasibility study and states that this process has not been
James H. Dunnett, EURO's Directeur-General, said: "We are very pleased
that IAMGold has clarified and confirmed its position on an expansion of
production at Rosebel to 400,000 ounces per year. An expansion of this
magnitude would have a significantly beneficial impact on our future revenue
from the Rosebel Royalty. IAMGold's comments and the continued expansion of
resources at Rosebel support our expectation that an expansion of production
EURO is a French company, presently focused on acquiring and holding
royalties and similar interests on operating gold mines, and has recently
announced that it has signed a letter of intent to acquire Patricia Mines
Corp. EURO also holds certain gold mineral rights in French Guiana. EURO has
approximately 50.5 million shares outstanding.
Statements Regarding Forward-Looking Information: Some statements
contained in this news release are forward-looking statements. Investors are
cautioned that forward-looking statements are inherently uncertain and involve
risks and uncertainties that could cause actual results to differ materially.
Such statements include comments regarding IAMGold's intentions to expand
production at the Rosebel mine and of the Company to acquire additional
royalty or mineral interests. There can be no assurance that future
developments affecting the Company or the Rosebel gold mine 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 US Securities Act of 1933 and may not be offered or
sold in the United States or to a US person absent registration or an
applicable exemption from registration.
Additional information relating to EURO Ressources S.A. is available on
SEDAR at www.sedar.com. Further requests for information should be addressed
James H. Dunnett, Susanne A. Hermans
Directeur-General Vice-President Finance
Tel: +1 604 710 2242 Tel: +1 303 204 7771
Email : firstname.lastname@example.org Email : email@example.com
For further information:
For further information: EURO Ressources S.A. James H. Dunnett,
Directeur-General +1-604-710-2242 firstname.lastname@example.org Susanne A. Hermans,
Vice-President Finance +1-303-204-7771 email@example.com