Columbus Gold Confirms Montagne d’Or Gold Project Spending and Funding Requirements
February 14 2018 - 4:30AM
Columbus Gold Corp.
(TSX:CGT) (OTCQX:CGTFF) is pleased to confirm its project
spending and funding requirements for the Montagne d’Or Gold
project in French Guiana.
Columbus announced on December 18th, 2017 that
the Montagne d'Or joint-venture (Columbus 44.99% and Nordgold
55.01%) approved proceeding with construction of a mine at the
Montagne d'Or gold project, subject to a number of additional
regulatory requirements, including:
- Construction will require the completion of a three-month
public consultation process (currently expected to begin in April
2018);
- Delivery of an Environmental and Social Impact Study (currently
expected in the 4th quarter of 2018); and
- Submission and approval of the mine permit applications.
The submission of the mine permit applications is scheduled for the
4th quarter of 2018 and approval is expected to take between 12 and
18 months.
In January 2018 Columbus provided notice to
Nordgold that it will contribute its proportionate share of mine
construction costs. Pursuant to the terms of the
joint-venture agreement between Nordgold and Columbus, all costs
related to construction of the mine, substantially as set-out in
the Feasibility Study (inclusive of permitting related costs), will
be paid by Nordgold. Columbus won’t be diluted, nor be
required to make payment for its proportionate share (44.99%) of
these expenditures until sixty (60) days following the receipt of
all the permits and authorizations necessary for mine
construction.
Permitting related costs include direct
permitting costs, as well as all indirect permitting costs such as
the public consultation, stakeholder engagement, public relations
and communications, marketing, and all associated personnel,
administrative and overhead costs etc..among others. The
permitting budget is estimated at ~US$15 million.
Total Net Initial Capital Costs (including
pre-stripping and contingencies, less surplus tax credit refunds)
to build a mine at Montagne d’Or are estimated in the Feasibility
Study at US$361 million (see news release of March 20,
2017).
ON BEHALF OF THE BOARD,
Robert F. Giustra ChairmanFor more information contact:
Investor Relations(604) 634-0970
or1-888-818-1364info@columbusgold.com
Certain statements and information contained in
this press release constitute "forward-looking statements" within
the meaning of applicable U.S. securities laws and “forward-looking
information” within the meaning of applicable Canadian securities
laws, which are referred to collectively as "forward-looking
statements". The United States Private Securities Litigation Reform
Act of 1995 provides a “safe harbor” for certain forward-looking
statements. Forward-looking statements are statements and
information regarding possible events, conditions or results of
operations that are based upon assumptions about future economic
conditions and courses of action. All statements and information
other than statements of historical fact may be forward-looking
statements. In some cases, forward-looking statements can be
identified by the use of words such as “seek”, “expect”,
“anticipate”, “budget”, “plan”, “estimate”, “continue”, “forecast”,
“intend”, “believe”, “predict”, “potential”, “target”, “may”,
“could”, “would”, “might”, “will” and similar words or phrases
(including negative variations) suggesting future outcomes or
statements regarding an outlook. Forward-looking statements in this
and other press releases include, but are not limited to statements
and information regarding: the construction and development plans
for the Montagne d’Or gold mine, including anticipated costs and
timing thereof; the satisfaction of additional requirements to the
construction of the Montagne d’Or gold mine, including but not
limited to, the completion of a public consultation process, the
delivery of an environmental and social impact study and the
submission and processing of mine permit applications; expectations
regarding future maintenance and capital expenditures, and working
capital requirements. Such forward-looking statements are based on
a number of material factors and assumptions and involve known and
unknown risks, uncertainties and other factors which may cause
actual results, performance or achievements, or industry results,
to differ materially from those anticipated in such forward-looking
information. You are cautioned not to place undue reliance on
forward-looking statements contained in this press release. Some of
the known risks and other factors which could cause actual results
to differ materially from those expressed in the forward-looking
statements are described in the sections entitled “Risk Factors” in
the Annual Information Form of Columbus Gold Corp. (“Columbus”),
available on SEDAR under Columbus’ profile at www.sedar.com.
Actual results and future events could differ materially from those
anticipated in such statements. Columbus undertakes no obligation
to update or revise any forward-looking statements included in this
press release if these beliefs, estimates and opinions or other
circumstances should change, except as otherwise required by
applicable law.