Cambior in deal with Golden Star

Montreal-based Cambior (TSE) can earn a half interest in Golden Star Resources’ (TSE) Gross Rosebel gold property in Suriname.

The property, 80 km south of Paramaribo on the coast, comprises 170 sq. km and hosts several zones identified by Golden Star. The exploration rights belong to Golden Star, which can obtain an exploitation concession after filing a feasibility study and environmental impact statement with the Surinamese government.

Cambior may earn its option by spending US$6 million on the project by June 30, 1996. The senior would also put up an additional US$2.5 million for development once it has acquired its interest, with repayment from project cash flow. Cambior has also agreed to help negotiate third-party financing. Golden Star will manage the exploration work. Cambior’s project responsibility will begin with preparation of the feasibility study. In neighboring Guyana, Cambior (65% interest) and Golden Star (30%) are partners with the Guyanese government (5%) in the producing Omai gold mine.

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