TSX-listed Orea Mining is pursuing a potential transaction to own 100% of the five-million-ounce Montage d’Or gold deposit in French Guiana, announcing on Thursday that it has initiated negotiations with Nordgold to obtain its 55.02% interest in the joint venture (JV).
Owning the Montagne d’Or gold deposit outright is an “immense opportunity” for the company, Orea said on Thursday, stating that it would prioritise its financing resources to obtain that objective.
Orea is pursuing a private placement of up to $1-million, which is under way, cutting its costs with overhead reductions and will terminate the Maripa project option and acquisition agreement.
The Maripa option agreement is with Iamgold and would have allowed Orea to acquire up to a 70% interest in the gold project, which is also located in French Guiana.
US sanctions on Nordgold have placed in doubt its ability to carry out responsibilities as operator of the JV, Orea previously cautioned, and it had until July 1 to wind down its JV dealings with Nordgold. The US Department of Treasury, Office of Foreign Assets Control, has now extended that deadline to August 31.