Perseus Mining Limited settles dispute with former Amara mining contractor

PERTH, WESTERN AUSTRALIA--(Marketwired - Dec. 1, 2016) -

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West African gold producer Perseus Mining Limited (PRU.TO)(PRU.TO) ("Perseus") advises that it has executed a Settlement Agreement with BCM International Ltd and its subsidiaries ("BCM") in relation to a dispute between BCM and various members of the Amara Mining group ("Amara"), that was acquired by Perseus earlier this year.

The dispute with BCM related to outstanding claims made by BCM against Amara in relation to contract mining services provided by BCM at Amara's now closed Kalsaka and Seguenega mines in Burkina Faso.

Under the terms of the settlement, Perseus has agreed to pay BCM the sum of US$20 million, with US$5 million payable immediately, and the balance to be paid when various seizure orders in Côte d'Ivoire are lifted and relevant court processes withdrawn.

Perseus Managing Director, Jeff Quartermaine Comments:

"We are pleased that this legacy issue from the Amara transaction has now been brought to a close and we can get on with implementing our growth strategy to transform Perseus into a mid-tier gold producer, unimpeded by this legal action.

In this respect, we are looking forward to commencing drilling at the Yaouré Gold Project in Côte d'Ivoire later this month and delivering a Definitive Feasibility Study for the Yaouré Gold Project around the middle of 2017."