Etruscan converts ownership interest in Samira to a royalty interest
Etruscan Resources Inc. reported today that it has concluded the sale of its interest in the Samira Hill Gold Mine located in Niger, West Africa to SEMAFO Inc. for US$3 million together with a 1.5% net smelter return royalty on additional ounces produced from the Samira Project in excess of 750,000 ounces as from July 1, 2009.
SEMAFO has been the operator of the Samira Hill Gold Mine since 2004 during which time it has produced more than 340,000 ounces of gold. Samira Hill’s reserves and resources at the beginning of 2009 were: 631,000 ounces of reserves, 1,294,000 ounces of measured and indicated resources and 608,000 ounces of inferred resources.
Gerald J. McConnell, Etruscan’s President and CEO stated:
“The Samira Hill asset provided the entry point for Etruscan into West Africa and allowed Etruscan to acquire its 90% owned Youga Gold Mine located in Burkina Faso which has been in production since July, 2008. This deal allows us to continue our focus on optimizing our Youga project while at the same time providing a continuing interest in any future expansion of the Samira Gold Mine and any new discoveries on the 55 kilometer Samira gold belt.”
