Mali frees Resolute executives after $160 million deal, AFP reports
The three executives, including CEO Terry Holohan, were freed from detention on Wednesday.
Euro Sun Mining (TSX: ESM) announced on Thursday it has signed a memorandum of understanding (MOU) with Glencore regarding an offtake for all future concentrates produced at its Rovina Valley project in Romania.
Under the MOU, Glencore would have the right of first refusal for an offtake agreement with Euro Sun on its future production. The commodity trading giant also has the right to nominate one director to the Euro Sun board.
Grant Sboros, CEO of Euro Sun, said the MOU underscores the growing international interest in the company’s flagship project. “The Rovina Valley project continues to represent a significant investment to benefit Romania, which is also critical for raw material security in Europe.”
In 2018, Euro Sun secured a 20-year mining licence from Romania for the Rovina Valley project. This paved the way for the company to begin the formal environmental impact assessment and urbanization certification processes, both of which are in progress.
Euro Sun considers Rovina Valley to be one of the largest undeveloped copper-gold projects in Europe. The property is estimated to hold 7 million oz. of gold and 1.4 billion lb. of copper in total resources spread across three deposits defined over a 7.5 km trend.
Development is currently focused on the Rovina and Colnic deposits, which are to be mined using simple open pit methods. The third deposit, Ciresata, offers upside for underground development and will be assessed by the company during the 17-year operation.
A definitive feasibility study (DFS) published in 2022, based on the Colnic and Rovina deposits only, outlined robust economics for the project, highlighted by $512 million in an after-tax net present value and a 20.5% internal rate of return. Total initial capital is estimated at $464.2 million.
The study projected Rovina Valley’s annual production at 82,000 oz. of gold and 23.2 million lb. of copper for 136,000 oz. of gold equivalent during its life of mine, including 107,000 oz. gold and 14 million lb. copper (139,000 oz. gold equivalent) in the first 10 years.
The DFS also oultined what would be one of the most environmentally responsible new copper/gold mines globally utilizing zero cyanide and not wet tailings.
Euro Sun recently received the approval for the initiation of the strategic environmental assessment (SEA) related to the project, allowing it to apply for a construction permit.
