Yorbeau Announces Termination of Option Agreement on the Rouyn Project
MONTREAL, Dec. 19, 2022 (GLOBE NEWSWIRE) -- Yorbeau Resources Inc. (TSX: YRB), (“Yorbeau” or the “Company”) announced today that IAMGOLD Corporation (“IAMGOLD”) has terminated its option to purchase a 100% interest in Yorbeau’s Rouyn property under the definitive option agreement between Yorbeau and IAMGOLD dated December 14, 2018 (the “Option Agreement”). IAMGOLD has indicated to Yorbeau that it has reviewed its options with the Rouyn project with respect to which it has invested significant funds over the last four years, and that the decision to terminate was due, among other factors, to its current decision to delay new investments in order to focus first on the Côté Gold Project.
The terms of the Option Agreement were announced in the Company’s press release dated December 17, 2018. Among other commitments, IAMGOLD was required to make scheduled cash payments in an aggregate amount of C$4 million during the expenditure period provided under the Option Agreement, of which C$3.25 million had been paid by IAMGOLD prior to termination of its option. IAMGOLD was required to make C$9 million of expenditures during the four-year option period in order to maintain its option. As at July 2022, IAMGOLD had spent more than C$8.3 million in drilling and other expenditures on the Rouyn project.
Yorbeau is pleased with the amount of drilling completed by IAMGOLD. With the Rouyn project no longer being committed to IAMGOLD, Yorbeau plans to explore other options with a view to maximizing such project’s value in light of current economic conditions, including the current market price of gold. Notwithstanding the termination of the Option Agreement by IAMGOLD, Yorbeau plans to work with its external consultants to complete the National Instrument 43-101 compliant mineral resource estimate for the Rouyn project, in respect of which IAMGOLD had commenced preliminary work under the Option Agreement.
About Yorbeau Resources
The 100% owned Rouyn property contains four known gold deposits in the six-kilometre-long Augmitto-Astoria corridor located in the western part of the property. Two of the four deposits, Astoria and Augmitto, have substantial underground infrastructure and have been the subject of technical reports that include resource estimates and have been filed in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects. In 2015, the Company expanded its exploration property portfolio by acquiring strategic base metal properties in prospective areas of the Abitibi Belt of Quebec and Ontario that feature an infrastructure favourable for mining development, including the Scott project, which bears important mineral resources (see the press release dated March 30, 2017) and on which a positive preliminary economic assessment was previously completed.
Additional information about the Company is available on its website, http://www.yorbeauresources.com.
For more information, please contact:
G. Bodnar Jr.
President, Chief Financial Officer
Yorbeau Resources Inc.
gbodnar@yorbeauresources.com
Tel: 514 384 2202
Toll free in North America: 1 855 384 2202
Forward-looking statements: Except for the statement of historical fact, all statements in this news release, including without limitation, regarding future plans and objectives with respect to the Company’s Rouyn project and the intention to prepare a National Instrument 43-101 compliance resource estimate, are forward-looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements. Yorbeau disclaims any obligation to update such forward-looking information unless required by applicable securities laws.
