Yorbeau Resources Inc. has reported that IAMGOLD Corporation (IAMGOLD) has terminated its option to acquire a 100% interest in Yorbeau’s Rouyn property under the December 14th, 2018 (Option Agreement) definitive option agreement between Yorbeau and IAMGOLD.
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IAMGOLD informed Yorbeau that it had examined its options with the Rouyn project, in which it had committed substantial sums of money over the previous four years, and that the decision to terminate was motivated, among other things, by its present choice to postpone future investments in order to concentrate on its Côté Gold Project.
The details of the Option Agreement were revealed in the Company’s press release dated December 17th, 2018. Among other obligations, IAMGOLD was obligated to pay scheduled cash payments totaling C$4 million throughout the expenditure period specified in the Option Agreement, of which C$3.25 million was paid by IAMGOLD prior to the option’s termination.
IAMGOLD was obligated to spend C$9 million throughout the four-year option period to keep its option. IAMGOLD had invested more than C$8.3 million on drilling and other expenses on the Rouyn project as of July 2022.
Yorbeau is pleased with the amount of drilling that IAMGOLD has completed. Yorbeau intends to look into additional options now that IAMGOLD is no longer committed to the Rouyn project to maximize the project’s worth in light of the present state of the economy, including the price of gold on the market.
Despite IAMGOLD’s decision to terminate the Option Agreement, Yorbeau intends to work with its external consultants to accomplish the National Instrument 43-101 compliant mineral resource estimate for the Rouyn project, on which IAMGOLD had begun preliminary work under the Option Agreement.