Yorbeau's Strategic Shift: Selling Rouyn Property to Australian Investors

Yorbeau Resources Inc. (TSX: YRB), a Canadian-based mining company, has announced a significant strategic move by signing a definitive asset purchase agreement to sell its Rouyn property to Lac Gold (Rouyn) Inc., a subsidiary of Lac Gold Pty Ltd (Au). This transaction, valued at C$25,000,000, marks a turning point for Yorbeau, allowing the company to focus on other promising projects and secure its long-term financial stability.

The Rouyn property, located in the Rouyn-Noranda district of Quebec, has been a central focus for Yorbeau for many years. However, the company has decided to divest this asset to fund exploration programs and pre-development activities on its other properties, as well as for general corporate purposes. This strategic shift enables Yorbeau to redirect its resources towards high-potential projects, such as the Scott Lake zinc-copper deposit and its well-located properties in the Detour, Joutel, and Selbaie regions.

The sale of the Rouyn property to Lac Gold, a company focused on Quebec's mining investment jurisdiction, presents a mutually beneficial opportunity. Lac Gold gains access to a promising property with a considerable mineral endowment, while Yorbeau secures the necessary funds to accelerate exploration on key target sites and strengthen its balance sheet. The transaction also includes a 2% net smelter royalty (NSR) granted to Yorbeau, further contributing to its long-term financial stability.

The delayed payment structure of the transaction, with the unpaid balance payable in three equal installments over four years, carries certain risks for both Yorbeau and Lac Gold. However, the first-ranking hypothec on the Property secures Lac Gold's payment obligations, mitigating potential risks. Additionally, Yorbeau's commitment to working closely with Lac Gold in satisfying closing conditions and assisting in bringing the Rouyn property into production demonstrates a shared commitment to the success of the transaction.

In conclusion, Yorbeau's decision to sell the Rouyn property to Australian investors represents a strategic shift in the company's focus, enabling it to allocate resources more effectively to its other promising projects. The transaction, valued at C$25,000,000, secures Yorbeau's long-term financial stability and allows the company to accelerate exploration on key target sites. The partnership with Lac Gold presents a mutually beneficial opportunity, with each company leveraging the strengths of the other to achieve their respective goals.