2023-06-13 15:11:12 ET
Orea Mining ( OTCQB:OREAF ) -7.9% in Tuesday's trading after saying it terminated plans to buy the outstanding stake in the Montagne d'Or gold project in French Guiana following the Canadian government's rejection of the deal.
The company said it formally ended the planned acquisition from Nord Gold of an additional 55% stake in the project after concluding there were no conditions in which Canada would approve the purchase.
Orea ( OTCQB:OREAF ) had expected to close its proposed deal in February but was delayed due to sanctions imposed by the Canadian government on Nord Gold's Russian controlling shareholders.
Orea ( OTCQB:OREAF ) remains the owner of a nearly 45% interest in Montagne d'Or and said it is assessing its options going forward.
The company said last week it had concerns about its ability to meet obligations as they become due.
More on Orea Mining:
- Financial and valuation comparison to sector peers
- Analysis: Orea To Buy Nord Gold's Stake In Montagne d'Or JV Company
- Stock price return: Down 80% YTD, down 64% in the past 12 months
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Orea Mining drops plans to buy additional stake in French gold project