PARIS, October 23 /CNW/ - EURO Ressources S.A. (TSX:EUR) (Paris:EUR)
reports that the Company has been advised by IAMGOLD Corporation that
production of 75,227 ounces of gold was achieved at the Rosebel gold mine
during the third quarter of 2007.
James H. Dunnett, Directeur-General of EURO, said "We are most pleased to
see production during the third quarter at an annual rate of over 300,000
ounces, as previously forecast by IAMGOLD. This continued improvement follows
the introduction of new equipment as part of IAMGOLD's stated target of
maintaining and increasing gold production at Rosebel. Further increases in
production are anticipated if, as expected, IAMGOLD determines to proceed with
the plant expansion currently under review."
In terms of the Participation Agreement, EURO calculates that an amount
in excess of $2.7 million is payable by IAMGOLD in respect of the stated
production for the third quarter of 2007. For that quarter, IAMGOLD has
reported that 26.4% of production was sourced from "hard rock". IAMGOLD is
asserting that the method of calculation of the amount of the royalty as
agreed and used since 2004 should be revised to take account of certain
payments due by IAMGOLD to a government-owned-entity in the Republic of
Suriname. If accepted, this "revision" would reduce the amount for the current
quarter by approximately $71 thousand. IAMGOLD has also advised EURO that it
deducted a total of $286,261 in respect of "overpayments" for prior periods in
the payment of $2,352,336, which EURO received today.
It is EURO's position that the deductions from the payment of the royalty
in respect of the quarter ended September 30, 2007 are not in accordance with
the terms of the Participation Agreement. EURO has sent IAMGOLD a formal
Objection Notice under the Participation Agreement and intends to take all
appropriate steps to obtain full payment of all amounts due.
EURO is a French company, presently focused on acquiring and holding
royalties and similar interests on operating gold mines. EURO also holds
certain gold mineral rights in French Guiana including Paul Isnard which
comprises 8 concessions and a PER over 140 sq. km. EURO has approximately 50.5
million shares outstanding.
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. Such statements include comments regarding the Company's
intentions with respect to its dealings with IAMGOLD Corporation and
anticipated developments at the Rosebel gold mine, which is operated by
IAMGOLD Corporation. 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 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
under EURO's profile on SEDAR at www.sedar.com. Requests for further
information should be addressed to:
James H. Dunnett, Allan J. Marter
Tel: +1 604 710 2242 Tel: +1 303 875 2090
Susanne A. Hermans
Tel: +1 303 204 7771
For further information:
For further information: EURO Ressources S.A. James H. Dunnett,
+1-604-710-2242 (Directeur-General) firstname.lastname@example.org Allan J. Marter,
+1-303-875-2090 (President) email@example.com Susanne A. Hermans,
+1-303-204-7771 (Vice-President Finance) firstname.lastname@example.org