Georgetown : Sandspring Resources Inc and its affiliate ETK Inc signed a partnership agreement with the Government of Guyana and the Guyana Geology and Mines Commission (GGMC) for a large scale mining operation that could yield 250,000 to 300,000 ounces of gold on an annual basis.
Prime Minister Samuel Hinds, Chairman of Sandspring Resources Inc, John Adams and GGMC Chairman Major General Ret’d Joe Singh were signatories to the agreement at the Office of the President.
The mineral agreement which will facilitate the feasibility study and construction of the Toroparu mines between the Cuyuni and Mazaruni rivers, has potential to contribute approximately US$550M annually to Guyana’s Gross Domestic Product (GDP).
Prime Minister Hinds explained that the agreement is based on the original Omai agreement with some adjustments and updates for the particular location.
The agreement requires the mining company to comply with stringent environmental standards which meet or exceed those that exist in the US and Canada and pay a royalty of eight percent to the Government in the event that gold prices rise above US$1,000. The company’s Chairman while delivering remarks, said that in light of the current price of gold the government’s request is understandable.
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