Guyanor Ressources S.A.

January 07, 2005 17:23 ET

Guyanor Ressources Announces Closing of Acquisition of Gross Rosebel Participation Right


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: Guyanor Ressources S.A.

TSX SYMBOL: GRL

JANUARY 7, 2005 - 17:23 ET

Guyanor Ressources Announces Closing of Acquisition of
Gross Rosebel Participation Right

PARIS--(CCNMatthews - Jan 7, 2005) -

Guyanor Ressources S.A. (TSX:GRL)(Nouveau Marche, Paris: GOR) confirms
that it has completed the acquisition of the Gross Rosebel Participation
Right (the "Rosebel Royalty") from Golden Star Resources Ltd., effective
December 31, 2004.

As previously announced, the Rosebel Royalty provides for payment by
Cambior Inc., (TSX:CBJ) of an amount determined as to 10% of the gold
production at the Rosebel gold mine in Suriname, calculated with
reference to the London gold price over US$300/oz (US$350 in respect to
production from "hard rock") and the volume of gold produced in each
calendar quarter. Guyanor management believes that based on the current
price of gold of approximately US$420 and Cambior's stated production
forecast from Gross Rosebel of about 300,000 oz. per annum, payments of
around US$3.5MM annually may be anticipated.

James H. Dunnett, Directeur-General of Guyanor, said: "The closing of
this transaction establishes Guyanor as a resource company with positive
cash-flow and real per-share earnings. Through this transaction,
Guyanor's shareholders will immediately participate in increases in the
price of gold while the Company's prudent use of hedging will ensure
protection from downside movements.

"Cambior's successful commissioning and operation of the Gross Rosebel
mine has been impressive and the on-going exploration results give
confidence that this will be a long lived mine." He continued: "The
shareholders of Guyanor have been well-served by the support, both
financial and through management, that has been and continues to be
provided by Golden Star, our majority shareholder. We thank them for
their support and confidence in Guyanor's future."

Funding for payment of the US$6 million first instalment of the purchase
price and the completion of the acquisition has been provided by a
facility made available by Macquarie Bank Limited. The facility provides
for an interest rate of 2.5% over LIBOR for an initial six month period
and for repayment of principal to be made over a 2 1/2 year term,
commencing after 6 months.

In connection with the facility, Guyanor has entered into hedging
arrangements with Macquarie providing for the sale of 57,000 ounces of
gold at a price of $421 per ounce over the term of the facility. These
hedging arrangements provide for a matching hedge of amounts to be paid
by Cambior to Guyanor under the Gross Rosebel royalty.

Guyanor is a French company, focused on the acquisition of royalty and
similar interests in mining properties, principally gold. It has an
existing portfolio of exploration and development properties in French
Guiana. Guyanor has approximately 45 million shares outstanding.

Statement 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 that could cause actual results to differ
materially. There can be no assurance that further developments
affecting Guyanor will be those anticipated by management.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Guyanor Ressources S.A., Paris
    James H. Dunnett, +1 604 710 2242
    Directeur-General
    or
    Allan J. Marter, +1 303 972 3046
    +1 604 608 3283 (FAX)