VANCOUVER, BC, Nov. 28,
2023 /CNW/ - Orea Mining Corp. ("Orea") (TSX:
OREA) (OTCQB: OREAF) (FSE: 3CG) reports that the Canadian
government has not provided a decision concerning Orea's amended
purchase agreement to acquire Nord
Gold plc's ("Nordgold") 55.01% interest in the
5-million-ounce Montagne d'Or gold mine development
project* (the "Acquisition"). Orea
and its legal team are not aware of any transactions obtaining
approval by the Canadian government related to persons sanctioned
under the Special Economic Measures (Russia) Regulations, and considers it unlikely
that the Acquisition will receive approval soon, or ever, therefore
the Acquisition has been terminated. Orea's board is considering
all available options to protect and advance its 44.99% interest in
Montagne d'Or.
Orea reported on June 13, 2023,
that the Canadian government rejected the Acquisition, leading to
Orea obtaining amendments to the terms and reaching what Orea
considers a risk-free purchase agreement (the "Amended
Agreement") from a regulatory perspective (announced
July 6 and July 20, 2023), whereby the proposed
C$100 million payment to Nordgold
could only be made by Orea if and when all sanctions are lifted
against Nordgold and its shareholders, in all applicable
jurisdictions, including in Canada, the United
States, France, the UK and
the EU. The Amended Agreement also stipulated that the payment
would not be due or payable at all under certain conditions.
Robert Giustra, Chairman of
Orea, commented: "Orea successfully navigated a myriad
of obstacles in multiple jurisdictions to acquire the sanctioned
Russian interest in Montagne d'Or, for 100% ownership in what is
widely considered to be one of the world's most valuable gold mines
in development; mining.com recently ranked it 9th
globally". Mr. Giustra further stated: "It was
very unexpected that the Acquisition was not supported by Orea's
home jurisdiction; Orea, its employees and its several thousand
Canadian shareholders cannot overstate their deep disappointment
with Global Affairs Canada and the Canadian government."
*About Montagne d'Or
Montagne d'Or is an open
pit gold mine development project that hosts Measured Mineral
Resources of 10.3 Mt at 1.804 g/t gold (600,000 oz), Indicated
Mineral Resources of 74.8 Mt at 1.350 g/t gold (3.25 Moz) and
additional Inferred Mineral Resources of 20.2 Mt at 1.48 g/t gold
(960,000 oz), prepared in accordance with the requirements of
National Instrument 43-101 - Standards of Disclosure for Mineral
Projects ("NI 43-101"). The Mineral Resources are confined within a
pit shell defined by a gold price of US$1,300/oz and a cut-off grade of 0.4 g/t gold.
Mineral Reserves have also been defined with Proven Mineral
Reserves of 8.25 Mt at 1.99 g/t gold (530,000 oz) and Probable
Mineral Reserves of 45.87 Mt at 1.50 g/t gold (2.2 M oz). The Proven and Probable Mineral
Reserves were estimated using a gold price of US$1,200 per ounce at varied cut-off grades from
0.552 to 0.665 g/t gold, dependent on lithological rock types,
economics and estimated metallurgical recovery. Montagne d'Or ore
can be readily processed to recover the contained gold and silver
values using unit operations considered standard to the
industry.
Qualified Person
Rock Lefrançois, a director of the
Company, is a Qualified Person under National Instrument 43-101,
has reviewed this news release and is responsible for the technical
information reported herein, including verification of the data
disclosed.
For more about Orea visit the company's website at
www.oreamining.com
Robert F. Giustra
Chairman
Certain statements made herein, including statements relating
to matters that are not historical facts and statements of the
Company's beliefs, intentions and expectations about developments,
results and events which will or may occur in the future,
constitute "forward looking information" within the meaning of
applicable Canadian securities legislation ("forward-looking
statements"). Forward-looking statements relate to future events or
future performance, reflect current expectations or beliefs
regarding future events and are typically identified by words such
as "anticipate", "could", "should", "expect", "seek", "may",
"intend", "likely", "budget", "plan", "estimate", continue",
"forecast", "believe", "predict", "protect", "advance",
"potential", "target", "would", "might", "will", "focus",
"develop", "discuss", and similar words, expressions or phrases
(including negative variations) suggesting future outcomes or
statements regarding an outlook. These include, but are not limited
to, statements and information regarding: the Company's ability to
find options to protect and advance its 44.99% interest in Montagne
d'Or; the Company's plans to construct and develop the Montagne
d'Or project, including anticipated timing thereof; the timing,
processes, outcome and other matters related to the renewal of the
Montagne d'Or concessions, including the appeal from the French
Government; action plans in response to the sanctions imposed on
Nord Gold PLC and certain shareholders of Nord Gold PLC, results of
any discussions or negotiations with Nord Gold PLC regarding the
acquisition of Montagne d'Or, directly or indirectly, including
obtaining necessary approvals from regulatory and sanctions
authorities in any jurisdiction, including extensions to such
approvals; completion of the acquisition of the remaining 55.01%
interest of Montagne d'Or, if any, and timing of closing of such
acquisition; plans to carry-out updated economic studies for
Montagne d'Or project, including the possibility of resulting in a
higher NPV; the impact from rulings by the French Constitutional
Court regarding the French Mining Code; rulings by the Court of
Appeal of Bordeaux regarding
compliance with environmental regulations; if and when proceedings
at the Court of Appeal of Bordeaux will take place and their timeline;
the satisfaction of regulatory requirements in respect of the
permitting, construction and operation of the Montagne d'Or
project, including but not limited to, the submission and
processing of mine permit applications, the timing thereof and the
timing of completion of environmental and engineering studies; the
Company's ability to renew the concessions for the Montagne d'Or
project and to comply with the conditions thereof; economic
analysis for the Montagne d'Or project and related exploration
objectives and plans; the conversion of mineral resources into
mineral reserves and the conversion of inferred mineral resources
into higher resource classification categories; the acquisition of
exploration projects including terms of acquisition, exploration or
development plans, intentions to acquire additional exploration or
development interests and the implications thereof; the elimination
or reduction of costs; the production capacity and potential of
future plant and equipment; future exploration and mine plans,
objectives and expectations and corporate planning of the Company,
future studies and environmental impact statements and the
timetable for completion and content thereof; impacts of government
sanctions against the Company's joint venture partner; and
statements as to management's expectations with respect to, among
other things, the matters and activities contemplated in this news
release.
Orea does not maintain or represent that the information,
opinions, analyses, conclusions, and rankings by mining.com, or by
any other third-party necessarily reflect the perspectives,
conclusions and ranking for all gold mines in development. Readers
are advised that such information and the resulting data,
commentary, analysis and opinions are inherently impacted by many
factors including, but not limited to the source and timing of
collection of data, surveyed parties, interpretation of data,
ongoing industry and market dynamics, etc.
Forward-looking statements are made based upon certain
assumptions and other important factors that, if untrue, could
cause the actual results, performance or achievements of the
Company to be materially different from future results, performance
or achievements expressed or implied by such statements. Such
assumptions and analyses are made by the Company's management in
light of their experience and perception of historical trends,
current conditions and expected future developments, as well as
other factors management believes are reasonable and appropriate in
the circumstances. All assumptions and analyses are those of the
Company's. There can be no assurance that such statements will
prove to be accurate. There can be no assurance any private
placement in progress will complete, nor any financing targeting
long-term strategic investors. Forward-looking statements are based
on numerous assumptions regarding present and future business
strategies, local and global economic conditions, and the
environment in which the Company will operate in the future,
including compliance by the Company with regulatory and permitting
requirements applicable in French
Guiana, the sufficiency of Company's working capital; the
Company's ability to secure additional funding for the continued
exploration and development of its properties; the price of gold
and other metals; and the Company's ability to retain key
personnel. You are hence cautioned not to place undue reliance on
forward-looking statements.
Certain important factors that could cause actual results,
performance or achievements to differ materially from those in the
forward-looking statements include, among others, political and
economic risks in France,
political and economic risks in French
Guiana, risks related to sanctions in France, Canada, the UK, the US and elsewhere; risks
relating to the Company's working capital; the renewal applications
for the Concessions and the possible outcomes thereof; possible
negative outcomes of any appeals from the decision of the
Administrative Court of Cayenne in French
Guiana; possible negative impacts from rulings by the Court
of Appeal of Bordeaux; possible
negative impacts from rulings by the French Constitutional Court
regarding the French Mining Code; regulatory risk including but not
limited to unforeseen changes in regulatory requirements, the
Company's ability to enforce its contractual and other legal rights
to explore and exploit its properties, risks related to exploration
and development, permitting and licensing risk, the estimation of
mineral resources and mineral reserves and related interpretations
and assumptions, future profitability of the Company, the ability
to obtain additional financing on a timely basis, the price of gold
and marketability thereof, government regulations including with
respect to taxes, royalties, land tenure and land use, title to the
Company's properties, currency exchange rates and fluctuations,
environmental risks, dilution resulting from the issuance of
additional securities of the Company, joint venture risks, reliance
on Nord Gold PLC as operator of the Montagne d'Or project, the
availability of equipment, conflicts of interest, competition in
the mining industry, uninsured risks, market fluctuations, global
financial conditions, credit risk and risks arising from pandemics
and epidemics. Although the Company has attempted to identify
important factors that could cause actual actions, events or
results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. These statements, however, are subject to a variety of
risks and uncertainties and other factors that could cause actual
events or results to differ materially from those projected in the
forward-looking statements.
Readers are cautioned not to place undue reliance on
forward-looking statements. By their nature, forward-looking
statements involve numerous assumptions, inherent risks and
uncertainties, both general and specific, which contribute to the
possibility that the predicted outcomes will not occur. Events or
circumstances could cause the Company's actual results to differ
materially from those estimated or projected and expressed in, or
implied by, these forward-looking statements. Important factors
that could cause actual results to differ from these
forward-looking statements are included in the "Risk Factors"
section in Company's annual information form dated December 21, 2022, for the year ended
September 30, 2022 ("AIF").
Readers are further cautioned that the list of factors
enumerated in the "Risk Factors" section of the AIF that may affect
future results is not exhaustive. When relying on the Company's
forward-looking statements and information to make decisions with
respect to the Company, investors and others should carefully
consider the foregoing factors and other uncertainties and
potential events. Furthermore, the forward-looking statements and
information contained herein are made as of the date of this
document and the Company does not undertake any obligation to
update or to revise any of the included forward-looking statements
or information, whether as a result of new information, future
events or otherwise, except as required by applicable law. The
forward-looking statements and information contained herein are
expressly qualified by this cautionary statement.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/orea-terminates-acquisition-of-additional-interest-in-montagne-dor-project-301998856.html
SOURCE Orea Mining Corp.