VANCOUVER, BC, March 1,
2023 /CNW/ - Orea Mining Corp. ("Orea") (TSX:
OREA) (OTCQB: OREAF) (FSE: 3CG) provides an update on the
closing of the acquisition of the additional 55.01% interest (for a
total of 100%) in the Montagne d'Or project holding company
("HoldingCo") in French
Guiana, France. HoldingCo
holds 100% of the Montagne d'Or permitting stage, 5-million-ounce
open pit gold mine development project*. Montagne d'Or
has good grade, excellent metallurgy, and there is
considerable potential to increase ounces by infill and expansion
drilling.*
The final regulatory and administrative steps to close the
acquisition were all obtained and completed, and closing was
scheduled for yesterday February 28,
2023. However, late last week on Thursday February 23, the Canadian government
sanctioned numerous additional Russian entities and individuals,
including certain ultimate shareholders of Nord gold PLC
("Nordgold"). Orea therefor wishes to obtain comfort on
sanctions from the Canadian government prior to proceeding to
closing.
Orea has been liaising with Canadian government diplomatic staff
for several months in Washington,
France and in the UK, hence the
Canadian government has been indirectly informed, however direct
engagement with Canadian sanctions authorities will now be sought
on a rush basis. Nordgold has extended the deadline for closing the
transaction from February 28 to March 30,
2023. The EU regulations which govern certain deadlines has
also been amended to allow for an extension, providing the ability
for France to grant Orea an
extension to its most recent approval (see news release dated
January 4, 2023).
Canadian and French applications are being filed immediately,
and Orea believes that March 2023 is
a reasonable target to obtain both Canadian approval and French
extension and to fully close the transaction. Orea will keep
shareholders informed.
*About Montagne d'Or
Orea is awaiting a decision by the Supreme Court of France regarding the renewal of the Montagne
d'Or mining titles (see press release of May 10, 2022). 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
Forward-Looking
Statements
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", "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 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,
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, including extensions; completion of the
acquisition of the remaining 55.01% s 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; 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.
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 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 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 such as the COVID-19
pandemic. 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.
SOURCE Orea Mining Corp.