The Merian Project
The Merian Project (the “Project”) is a gold deposit located approximately 66 kilometers (Km) south of the town of Moengo and 30 Km north of the Nassau Mountains in Suriname.
Suriname Gold Company LLC (“Surgold”), which is owned by Newmont Mining Corporation (“Newmont”), owns and operates the Project. In July 2014, Newmont announced it would invest in the development of the Project. Prior to reaching this milestone, Surgold completed the following requirements:
- Execution of the Mineral Agreement between the Government of Suriname and Surgold in November 2013; and
- Approval of the Feasibility Study and Environmental and Social Impact Statement (ESIA) by Suriname’s Ministry of Natural Resources in December 2013.
Pursuant to the Mineral Agreement, Surgold has satisfied all the conditions for the Government of Suriname to grant Surgold the right to mine. The Mineral Agreement outlines the terms of the
development and operation for the Project and includes royalties, taxes, labor, environmental and other provisions.
The Mineral Agreement provides the Government of Suriname with an option to participate in the Project as a partner at up to a 25 percent equity interest. Once the right to mine is granted, the Government of Suriname will have 60 days, plus a 45-day grace period, to exercise its option to participate by making an initial cash contribution equal to Surgold’s historical costs times a factor of 1.5 times the percentage of the government’s equity participation. At such point, a limited partnership will be created in which Surgold will be the managing partner and NV Twee (a Surinamese corporation fully owned by the Government of Suriname) will be the limited partner.