EURO RESSOURCES COMPLETES RESTRUCTURING OF THE PAUL ISNARD ROYALTY
PARIS, France, November 7, 2013: EURO Ressources S.A. ("EURO" or the "Company") today announced that, COLUMBUS Gold Corp. ("COLUMBUS") has exercised its right under the existing option agreement to purchase the original royalty held by EURO on the Paul Isnard properties in French Guiana. The Paul Isnard properities are comprised of eight mineral concessions and an application for an operating permit (the "PEX") to replace an exploration permit.
In exchange for the original Paul Isnard royalty, EURO has received cash consideration totalling C$4.2 million, 18,208,328 common shares in COLUMBUS, and retains a net smelter returns production royalty ("NSR royalty") on the eight mineral claims and an area of interest surrounding the claims. The NSR royalty will pay 1.8% on the first 2 million ounces of gold followed by 0.9% on the next 3 million ounces of gold.
As a result of the transaction, EURO now has ownership of 19,095,345 common shares of COLUMBUS which represents approximately 15.78% of the outstanding common shares. The common shares of COLUMBUS acquired directly today by EURO were acquired as part of a restructuring of the original Paul Isnard royalty and are held for investment purposes. As part of the transaction, EURO has agreed, for a period of eighteen months from closing, to a standstill on the acquisition of additional shares of COLUMBUS, the sale of existing shares held of COLUMBUS, subject to certain exceptions, and to not directly or indirectly change the composition of COLUMBUS' board of directors. EURO therefore does not have any present intention to acquire ownership of, or control or direction over, additional securities of COLUMBUS. It is the intention of EURO to evaluate its investment in COLUMBUS on a continuing basis, and such holdings may change in the future.
EURO is a French company whose principal asset is the Rosebel Royalty on gold production at the Rosebel mine operated by IAMGOLD Corporation ("IAMGOLD"). EURO has approximately 62.5 million shares outstanding. IAMGOLD France S.A.S., an indirect wholly owned subsidiary of IAMGOLD, owns today approximately 86% of all outstanding shares.
Statements Regarding Forward-Looking Information: Some statements in this news release are forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties. There can be no assurance that future developments affecting the Company will be those anticipated by management.
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Source: EURO Ressources via Thomson Reuters ONE