EURO Ressources : EURO RESSOURCES ANNOUNCES AN AMENDMENT TO THE OPTION AGREEMENT WITH COLUMBUS GOLD CORPORATION
EURO RESSOURCES ANNOUNCES AN AMENDMENT TO THE OPTION AGREEMENT WITH COLUMBUS
PARIS, France, July 26, 2012:Â EURO Ressources S.A. ("EURO") (Paris: EUR) today
announced that it had signed an amendment to the option agreement with Columbus
Gold Corporation ("Columbus") (TSX-V: CGT). The original option agreement with
Columbus was in December,Â 2011.Â The original agreement allowed for the
restructuring of the Paul Isnard royalty held by EURO on the properties in
The amendment gives Columbus one additional year to consider exercising the
option.Â Prior to the amendment, the option would expire 120 days following the
date on which Columbus obtained the Paul Isnard Project. Since Columbus has now
obtained a 100% beneficial interest in the Paul Isnard Project and is in the
process of transferring legal title, under the original agreement, Columbus
would have been required to elect to exercise the option sometime in late 2012.
The original agreement stated that if Columbus completed a subsequent equity
offering, before exercise of the option, at a share price that was less than the
original deemed share price (C$0.65 per share), there would be an automatic
adjustment upward of the total option exercise shares that EURO will receive
from Columbus.Â Columbus completed an equity offering inÂ May,Â 2012 atÂ C$0.55Â per
share and as a consequence, Columbus upon exercise of the option, will give EURO
Key terms of the amendment are listed below and are subject to TSX-V approval:
* 650,000 additional shares of Columbus in consideration of the amendment to
the option agreement
* Additional shares in Columbus relating to the May 2012 Columbus equity
issue, upon exercise of the option:
* 2,409,376 additional shares in Columbus, the total of option exercise
shares in Columbus now being 15,274,976 shares.
* The deemed share price for future share price adjustment consideration now
being C$0.45 per share
Other significant terms remain unchanged:
* C$4.2 million in cash
* A 1.8% net smelter royalty on the first 2 million ounces of gold followed by
a 0.9% net smelter royalty on the next 3 million ounces of gold. This
royalty is capped at 5 million ounces.
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 62.5Â million shares outstanding. EURO is a majority-owned
subsidiary of IAMGOLD France SAS (approximately 86% of all outstanding shares
and voting rights), a wholly-owned subsidiary of IAMGOLD.
Statements Regarding Forward-Looking Information: Â Â 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.Â Â There can be no assurance that future developments affecting
the Company will be those anticipated by management.
Not for distribution to United States newswire services or for dissemination in
the United States. The securities referred to herein have not been registered
under the United States Securities Act of 1933, as amended (the "Securities
Act"), and may not be offered or sold in the United States or to a U.S. person
absent registration, or an applicable exemption from the registration
requirements of, the Securities Act.
Additional information relating to EURO Ressources S.A. is available on SEDAR at
www.sedar.com.Â Further requests for information should be addressed to:
EmailÂ : firstname.lastname@example.org
Susanne A. Hermans
TÃ©l.: +1 303 204 7771
Email : email@example.com
EURO ANNOUNCES AN AMENDMENT TO THE OPTION AGREEMENT WITH COLUMBUS:
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Source: EURO Ressources via Thomson Reuters ONE