MONTREAL, Dec. 17, 2018 /CNW Telbec/ - Yorbeau Resources Inc. (TSX: YRB) (the "Company" or "Yorbeau") is pleased to announce that it has signed a definitive option agreement with IAMGOLD Corporation ("IAMGOLD"), whereby IAMGOLD has an option to acquire a 100% interest in Yorbeau's Rouyn property (the "Property") in Quebec, Canada.
The definitive option agreement provides that, subject to certain conditions, IAMGOLD would make certain cash payments and incur exploration expenditures towards an option to purchase a 100% interest in the Property. In order to earn the purchase option, IAMGOLD must:
- make an initial cash payment to Yorbeau on the effective date of the definitive option agreement (the "Effective Date") of an amount of C$1 million;
- fund and incur C$9 million of exploration expenditures in a period of up to 48 calendar months following the Effective Date (the "Expenditure Period"), including minimum exploration expenditures in each 12‑month period of the Expenditure Period and at least 20,000 meters of diamond drilling within a 24-month period following the later of the Effective Date or the date all requisite governmental approvals or consents for the drilling program shall have been obtained;
- make interim cash payments to Yorbeau during the Expenditure Period of an aggregate amount of C$3 million;
- complete a resource estimate for the Property in accordance with IAMGOLD's standard estimation and reporting practices subject to detailed technical parameters agreed to between IAMGOLD and Yorbeau; and
- make a final cash payment to Yorbeau, in three instalments over up to a two-year period following the Expenditure Period, in an aggregate amount equal to the lesser of (a) an amount calculated by multiplying the total number of ounces of gold identified in the resource estimate by C$15.00 and (b) C$30 million.
In addition to the final cash payment, Yorbeau will be issued and granted by IAMGOLD , at the time of exercise of the option, a 2% net smelter royalty on any minerals produced from the Property. IAMGOLD will be the operator and project manager of the Property during the option period with Yorbeau to have representation on an advisory committee which will make recommendations on the work program.
The definitive option agreement remains subject to approval by the shareholders of Yorbeau, which will be sought at a special meeting to be held on December 19, 2018, as previously announced in the Company's press release dated November 27, 2018.
Company president Gérald Riverin stated: "Company management is highly enthusiastic to partner with IAMGOLD to advance the Rouyn project with the intention of realizing value for all project stakeholders. IAMGOLD is a well-established gold producer in the area with an operating gold mill located within 40 kilometers from the Rouyn property. The potential synergies with the project are therefore evident and signing the definitive option agreement marks a significant milestone for Yorbeau and the Rouyn project. We are looking forward to working with IAMGOLD to initiate a major drilling program with the objective of converting well established exploration potential into mineral resources."
About Yorbeau Resources Inc.
The Rouyn Property, wholly-owned by the Company, contains four known gold deposits in the 6‑km‑long Augmitto-Astoria corridor situated on the western portion of the property. Two of the four deposits, Astoria and Augmitto, benefit from substantial underground infrastructure and have been the subject of technical reports that include resource estimates and that were filed in accordance with Regulation 43-101. In 2015, the Company expanded its exploration property portfolio by acquiring strategic base metal properties in prospective areas of the Abitibi Belt of Quebec and Ontario that feature an infrastructure favourable for mining development. The newly acquired base metal properties include the Scott Project, which bears important mineral resources (see the press release dated March 30, 2017) and on which a positive Preliminary Economic Assessment was recently completed.
For additional information on the Company, consult its website at www.yorbeauresources.com.
Forward-looking statements: Except for statement of historical fact, all statements in this news release, without limitation, regarding the option agreement and payments and exploration expenditures thereunder, the approval of the option agreement by the shareholders, and future plans and objectives are forward‑looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and the option agreement remains subject to shareholder approval; actual results and future events could differ materially from those anticipated in such statements. Yorbeau disclaims any obligation to update such forward-looking statements, other than as required by applicable securities laws.
SOURCE Yorbeau Resources Inc.
For further information: Gérald Riverin, PhD, P. Geo, President, Yorbeau Resources Inc., Yorbeau Resources Inc., [email protected], Tel: 819-279-1336; G. Bodnar Jr., Vice-President, Chief Financial Officer, Yorbeau Resources Inc., [email protected], Tel: 514-384-2202, Toll free in North America: 1-855-384-2202