Orea Mining has recently signed an agreement with Nord Gold to acquire its 55.01% interest in the Montagne d’Or gold project in French Guiana. This acquisition will provide the Canadian miner with complete ownership of the project.
According to Orea, the amended agreement specifies that a payment of 100 million Canadian dollars, equivalent to $76 million, will be made once all sanctions against Nord Gold are lifted.
Initially, Orea had anticipated closing the deal in late February. However, due to the Canadian government’s sanctions on Nord Gold’s Russian controlling shareholders, the process was delayed.
In June, Orea decided to terminate its plans to acquire Nord Gold’s stake. This decision came after legal advisers determined that there were no conditions under which Canada would approve the purchase. At that time, Orea already held a 45% interest in the project.
In addition, the new agreement states that the payment to Nord Gold will only be due if sanctions are lifted within three years from Orea receiving all necessary permits to operate a gold mine at Montagne d’Or or within seven years from the closing of the acquisition.