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Eagle Mountain acquires full ownership of flagship Guyana project

13th February 2013

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – Project developer Eagle Mountain Gold this week acquired full ownership of its eponymously named flagship project in Guyana, after it sold 10% equity to a 95%-owned subsidiary of miner Iamgold.

Omai Gold Mines had acquired 3.23-million shares of Eagle Mountain, increasing its total ownership to 14.93%.

The transaction followed the exercise of an option held by Eagle Mountain to acquire from Omai Gold Mines the remaining 50% interest in the advanced-stage Eagle Mountain gold property.

Closure of the transaction gave Eagle Mountain full ownership of the property, and established Iamgold as the company’s largest indirect shareholder.



"Iamgold has been positioned as a strategic partner. Becoming our largest stakeholder demonstrates confidence in our team's ability to develop the Eagle Mountain gold project,” Eagle Mountain CEO Yannis Tsitos said on Monday.

The Eagle Mountain property hosts a near-surface National Instrument 43-101-compliant resource of 188 000 oz of gold in the indicated category and 792 000 oz of gold in the inferred category, with significant potential for expansion.



The deposit covers 250 ha of the 5 050 ha property and is open in three lateral directions and at depth with strong mineralisation along its edges.

The company’s stock closed down 7.41% at 50 Canadian cents apiece on the TSX-V on Tuesday.

Edited by Creamer Media Reporter

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