CAYENNE, French Guiana, Aug. 6, 2002 (PRIMEZONE) -- Guyanor Ressources S.A. (Toronto:GRL) and (Nouveau Marche of the Paris Bourse:GUYN) ("Guyanor") is pleased to announce that it has signed a definitive agreement with Compagnie Miniere Esperance S.A. ("CME") for the sale by Guyanor to CME of Guyanor's 100% interest in Societe des Mines de St-Elie SARL ("SMSE"), which holds the mining rights to the St. Elie gold property in French Guiana ("St Elie").
The total consideration will be as follows:
1. U.S. $0.5 million of cash at closing;
2. the release by CME of a royalty obligation (approximately 3,000
ounces of gold) owed by Guyanor on future production from
St. Elie; and
3. the payment of a 2.5% royalty on all future gold production from
St. Elie. In addition, at gold prices above U.S. $350 per ounce,
an additional royalty payment of 2.5% will be made by CME to
Guyanor on the incremental revenue above U.S. $350 per ounce.
These payments are capped at the amount of the shareholder debt
owed by SMSE to Guyanor at closing, provided that such shareholder
debt does not exceed U.S. $ 7.5 million.
The closing of the transaction is subject to approval by the French Industry Ministry (Ministere de l'Industrie).
CME plan to utilize existing mining and processing equipment owned by CME in French Guiana to start exploitation of the known gold resources. Exploitation is expected to commence by early 2003.
Guyanor anticipates utilizing the cash proceeds of the transaction to repay a portion of the U.S. $11 million of debt owed to its majority shareholder, Golden Star Resources Ltd. (AMEX:GSS), which owns 73% of Guyanor.
Guyanor is a French exploration company, which operates exclusively in the French Department of Guyane (French Guiana) and is focused on the identification, exploration and development of significant mineral deposits, principally gold and diamonds. Guyanor currently holds interests in the St. Elie, Yaou, Dorlin and Paul Isnard gold properties. Guyanor currently has approximately 45 million shares issued. Golden Star is listed on the Toronto Stock Exchange under the symbol "GSC" and on The American Stock Exchange under the symbol "GSS."