Euro Ressources
Encyclopedia
Euro Ressources S.A. is a French company focused on precious-metal royalties.

The Company’s principal asset is a 10% royalty interest on production from the Rosebel gold mine in Suriname
Suriname
Suriname , officially the Republic of Suriname , is a country in northern South America. It borders French Guiana to the east, Guyana to the west, Brazil to the south, and on the north by the Atlantic Ocean. Suriname was a former colony of the British and of the Dutch, and was previously known as...

. Rosebel is operated by IAMGOLD
IAMGOLD
Iamgold Corporation is a Toronto based international gold producer. The company is engaged in the exploration, development, and production of mineral resource properties throughout the world.-Operations:...

 and has an estimated resource of +10MM oz of gold. The Company’s interest is on the first 7,000,000 ounces of attributable production and payments are primarily based on production and the quarterly average gold price over $300. Rosebel commenced production in 2004 and is currently forecast to produce approx. 300,000 ounces of gold per annum.

The Company also owns the Paul Isnard historic gold producing property in French Guiana
French Guiana
French Guiana is an overseas region of France, consisting of a single overseas department located on the northern Atlantic coast of South America. It has borders with two nations, Brazil to the east and south, and Suriname to the west...

. EURO has recently entered into a transaction for the development of Paul Isnard by Golden Star, who will acquire ownership in exchange for a 10% royalty interest payable to EURO. This royalty interest will be payable in a similar manner to the Rosebel royalty but on the average gold price over $400/ounce. EURO also has certain additional royalty interests in French Guiana.

Company shares are listed under the symbol "EUR" on the Euronext
Euronext
Euronext N.V. is a pan-European stock exchange based in Amsterdam and with subsidiaries in Belgium, France, Netherlands, Portugal and the United Kingdom. In addition to equities and derivatives markets, the Euronext group provides clearing and information services...

 in Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...

.

EURO completed a financial restructuring during 2004 which included the forgiveness of certain debts owed to Golden Star
Golden Star
Golden Star is a carambola cultivar that was developed at the Tropical Research and Education Center of the Florida Agricultural Experiment Station , an agricultural research program of the University of Florida's Institute of Food and Agricultural Sciences.The cultivar was released from the FAES...

, the joint venture to Golden Star of its principal exploration assets in French Guiana, and the sale of certain data and exploration assets. The Company also consolidated its shares into one class of shares and changed its name from Guyanor Ressources SA to EURO Ressources SA in June 2005.

As part of the restructuring and reorganization, the Company acquired a 10% royalty interest in production at the Rosebel gold mine. The Rosebel mine is in Surinam and is operated by Iamgold
IAMGOLD
Iamgold Corporation is a Toronto based international gold producer. The company is engaged in the exploration, development, and production of mineral resource properties throughout the world.-Operations:...

. It commenced production in early 2004. The royalty is payable by Iamgold, calculated quarterly on 10% of the gold production, and paid on the excess of the average London PM gold fixing over US$300 (US$350 for hard rock).

The Rosebel Royalty was acquired from Golden Star for an initial amount of US$12 million, with additional payments due in the event that production at Rosebel exceeds 2MM ounces. As at 31 December 2004, the Company paid Golden Star US$6 million financed by a loan facility provided by Macquarie Bank Limited. The remaining payments to Golden Star are subordinated to the repayments due to Macquarie.

Management of the Company considers that, based on current production levels, the Rosebel gold mine is expected to meet the 270,000 annual production forecast by Iamgold. At current gold prices, the Company expects to receive in excess of US$8 million in revenue from Rosebel during 2007. Management is actively seeking the acquisition of additional royalty interests.
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