Nordgold has renewed its negotiations with Orea Mining Corp. to sell its stake in a joint venture (JV) in French Guiana, TASS reports.
Under the new terms, the deal will become possible if sanctions imposed against the Russian company are lifted within the next seven years.
Nordgold owns a 55.01% stake in Montagne d'Or JV in French Guiana. Formerly Orea Mining Corp. made a statement regarding the termination of the sale agreement due to the refusal of Canada's administration to greenlight the deal. Orea Mining is incorporated in Canada.
"The amended agreement provides that the payment of CAD$100 million will only be made if and when all sanctions against Nordgold and its shareholders in all applicable jurisdictions, including Canada, the US, the UK, France and the EU, are lifted” , Orea Mining said. In addition, if sanctions are not lifted within seven years from the date of closure of the deal or three years after Orea receives a development license for the project, then the payment is voided.
At the same time, the cost of sale of Nordgold 's stake remained the same at CAD100 million (about $75 million).
In August 2022, it was reported that gold mining company Nordgold announced an agreement with Orea Mining Corp. on the sale of its share in the JV, the payment was due only after obtaining all permits and approvals needed to commission the mine with a production capacity of 100 000 ounces of gold a year minimum.
Nordgold has operations in Russia, Kazakhstan, Burkina Faso and Guinea and develops a number of promising projects.
Theodor Lisovoy, Editor in Chief of the European bureau, Rough&Polished
