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Montreal, Quebec, December 19, 2022, Yorbeau Resources Inc. (TSX: YRB), (“Yorbeau” or the “Company”) announced today that IAMGOLD Corporation (“IAMGOLD”) has terminated its option to purchase a 100% interest in Yorbeau’s Rouyn property under the definitive option agreement between Yorbeau and IAMGOLD dated December 14, 2018 (the “Option Agreement”). IAMGOLD has indicated to Yorbeau that it has reviewed its options with the Rouyn project with respect to which it has invested significant funds over the last four years, and that the decision to terminate was due, among other factors, to its current decision to delay new investments in order to focus first on the Ct Gold Project.
The terms of the Option Agreement were announced in the Company’s press release dated December 17, 2018. Among other commitments, IAMGOLD was required to make scheduled cash payments in an aggregate amount of C$4 million during the expenditure period provided under the Option Agreement, of which C$3.25 million had been paid by IAMGOLD prior to termination of its option. IAMGOLD was required to make C$9 million of expenditures during the four-year option period in order to maintain its option. As at July 2022, IAMGOLD had spent more than C$8.3 million in drilling and other expenditures on the Rouyn project.
Yorbeau is pleased with the amount of drilling completed by IAMGOLD. With the Rouyn project no longer being committed to IAMGOLD, Yorbeau plans to explore other options with a view to maximizing such project’s value in light of current economic conditions, including the current market price of gold. Notwithstanding the termination of the Option Agreement by IAMGOLD, Yorbeau plans to work with its external consultants to complete the National Instrument 43-101 compliant mineral resource estimate for the Rouyn project, in respect of which IAMGOLD had commenced preliminary work under the Option Agreement.