SOURCE: EURO Ressources

November 19, 2009 12:11 ET

EURO Ressources : SETTLEMENT REACHED WITH GOLDEN STAR REGARDING PAUL ISNARD PROPERTIES

PARIS--(Marketwire - November 19, 2009) - SETTLEMENT REACHED WITH GOLDEN STAR REGARDING PAUL ISNARD PROPERTIES

PARIS, France, November 19, 2009: EURO Ressources S.A. (Paris: EUR) today announced that it has entered into a settlement agreement with Golden Star Resources Ltd. ("Golden Star") to bring an end to the litigation between the two parties regarding the Paul Isnard properties (the "Settlement Agreement"), which are held by EURO and Société de Travaux Publics et de Mines Aurifères en Guyane S.A.R.L. ("SOTRAPMAG"), EURO's wholly-owned subsidiary in French Guiana.

The Paul Isnard properties are comprised of eight mineral concessions held by SOTRAPMAG and the Paul Isnard Permis Exclusif de Recherches ("PER") (collectively, the "Paul Isnard Properties"). EURO has applied for a second renewal of the PER, which is in process with the French Governmental Authorities.

Pursuant to the terms of the Settlement Agreement, EURO has agreed to transfer ownership of SOTRAPMAG and of EURO's interest in the PER, if it is renewed, to Golden Star or as it may direct, and EURO will receive a royalty on gold production from the Paul Isnard Properties. The royalty, as historically agreed between the parties, is equal to the difference between the market price of gold and US$400.00 multiplied by 10% of gold production up to two million ounces and by 5% of gold production between two and five million ounces.

Golden Star also has agreed to pay EURO a lump sum of US$100,000.00 and either pay EURO US$20,000.00 per month, effective October 1, 2009, towards the costs of security services on the eight SOTRAPMAG concessions or perform these security services itself until 100% of SOTRAPMAG's shares are transferred to Golden Star.

Under the terms of the Settlement Agreement, Golden Star also will assume responsibility for the remediation and rehabilitation of the Paul Isnard Properties in relation to the environmental condition of these properties prior to being transferred to Golden Star.

The transfer of SOTRAPMAG and of Euro's interest in the PER, if it is renewed, remains subject to the prior approval of French authorities and the renewal of the PER to extend its expiry to November 2010 is dependent upon the manner in which the yet to be released new mining framework for French Guiana will be implemented by the French government.

About EURO

EURO is a French company whose principal asset is the Rosebel royalty on gold production at the Rosebel mine operated by IAMGOLD Corporation ("IAMGOLD"). EURO has approximately 62.5 million shares outstanding. Since the 17th of December 2008, EURO is a majority-owned subsidiary of IAMGOLD. IAMGOLD owns approximately 85.75% of EURO.

Statements Regarding Forward-Looking Information: Some statements in this news release are forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties. Such statements include comments regarding EURO's intentions with respect to mining activities in French Guiana and its dealings with Golden Star. There can be no assurance that future developments affecting EURO will be those anticipated by management.

Not for distribution to United States newswire services or for dissemination in the United States. The securities referred to herein have not been registered under the US Securities Act of 1933 and may not be offered or sold in the United States or to a US person absent registration or an applicable exemption from registration.

Additional information relating to EURO Ressources S.A. is available on SEDAR at www.sedar.com. Further requests for information should be addressed to:

Larry E. Phillips

Directeur-Général

Tel:+1 4163604710

Email : phillips@euroressources.net

Susanne A. Hermans

Vice-President Finance

Tél.: +1 303 204 7771

Email : shermans@euroressources.net

This information is provided by HUGIN

Contact Information

  • Larry E. Phillips
    Directeur-Général
    Tel:+1 4163604710
    Email : Email Contact

    Susanne A. Hermans
    Vice-President Finance
    Tél.: +1 303 204 7771
    Email : Email Contact