Canada-based Orea Mining has signed a binding term sheet (BTS) with an undisclosed firm to acquire a stake of up to 75% in an advanced-stage gold exploration project in Suriname.

Located in the country’s significant alluvial gold mining district, the land package comprises 200km² of mining licences within an underexplored segment of the Guiana Shield greenstone belts.

Orea Mining can become an operator in the project through three option stages, with the first option stage for a 51% interest.

This will be followed by a second option stage for an additional 19% interest and the last option stage for another 5% stake.

Orea would transfer its interest in the project back to the optionor in case it fails to complete the second option stage.

The two firms, upon successful earn-in of the project, plan to establish a joint venture to accelerate the project into the production phase.

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By GlobalData

The Canadian gold exploration and development company said that the project has an active alluvial and small-scale open-pit gold mining operation.

The exploration carried out during 1993-1997 and 2006-2007 by Canadian juniors identified several targets for immediate resource development.

Orea said that the existing licences allow for exploration and mining at the project, where a large portion remains unexplored.

Orea president and CEO Rock Lefrançois said: “We are very excited to expand our activities in South America, strategically within the Guiana Shield, where we have established expertise over the past ten years.

“Suriname’s favourable mining regime and Orea’s proven capabilities in the region will allow for rapid development of this promising project.”

Earlier this year, Orea terminated a binding letter of intent (BLoI) to acquire gold assets in Colombia. The decision followed the completion of a detailed due diligence evaluation.

Signed in January 2021, the BLoI would enable Orea to acquire a full interest in 13 mining concessions in three separate blocks, including multiple artisanal gold mines.