The company is publicly listed on the Toronto Stock Exchange and has a market capitalization of $128 million. The company’s ownership includes institutional and individual investors; the largest shareholder are Robert McEwen with 11.4% and Patrick Sheridan (Company CEO) with 6.1%.

The company has raised $18 million to date and seeks to raise an additional $4.3 million from IFC. The capital will be used to fund the continuing exploration program and the bankable feasibility study.

11.52 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	11.52

* These investment figures are indicative

The Aurora property is located in the interior of Guyana along the Cuyuni river, 175 km west of Georgetown. Peters is located 140 km southwest of Georgetown and 80 km west of Bartica. Both areas are sites of past producing mines. The current focus is on Aurora, and there is a camp housing approximately 40 full time workers at this site.

- World Bank Group Strategy

The Guyana Country Assistance Strategy (CAS) was discussed at the Board on May 2002. The development objective of the Bank Group’s Assistance Strategy for Guyana is to help create the conditions for a sustained reduction of poverty levels in the country. To this end, the Bank Group is supporting the key priorities of Guyana’s Poverty Reduction Strategy Paper, namely:

- stimulating economic growth through sound macroeconomic management, more efficient implementation of the public sector investment program, in particular in the sugar sector, and improving the environment for private investment;
- improving public sector governance and accountability by strengthening oversight systems and building capacity; and
- enhancing provision of, and access to, basic services and safety nets. In line with the CAS, IFC’s focus includes the management of its portfolio, while being very selective in project financing. Within this framework, as opportunities arise, IFC is supporting the private sector in growth generating sectors of the economy, including the mining sector.

- Project Development Impact

While there is considerable potential for mining in Guyana, there are few large scale mining projects with the exception of two recently privatized bauxite mines. Despite this, Extractive Industries are an important component of the Guyanese economy. Between 2000-2004, gold and bauxite mining contributed about 10% of GDP, and the share of gold in total export proceeds averaged about 25%. The Omai Gold Mine, which closed in third quarter 2005 due to depletion of resources, accounted for about 75% of the total declared gold production. It paid, on average, royalties and taxes of over US$8 million annually from 1993 – 2004, representing up to about 4% of total government revenues annually, and employed over 1,100 people. The Omai Gold Mine closure will cause a dramatic fall in gold production, with implications for exports, government revenues and employment. The development of Guyana Goldfields'' deposits, should it proceed as planned, is expected to offset some of this decline and help maintain the important contribution of the gold sector to the Guyanese economy. Development benefits at the mine production stage include employment, fiscal revenues, increased exports, and linkages with small and medium scale service providers.

- Governance Context

While mine development is not expected to commence for another 18-24 months and gold production for another 36-48 months, it is anticipated that revenues will flow from the project to the government. As with all extractive industry projects that could provide substantial benefits to governments, the governance and transparency of any potential revenue flows to the government will be a focus for the WBG. The country has made some governance related improvements over the recent years, including working with the World Bank to draft and pass relevant laws, and the status of the implementation of these laws will be closely followed. Several multilateral and bilateral donor have active programs focused on improving governance and building capacity within the governmental agencies, so IFC will explore collaboration with these organizations.

- IFC Role & Expected Contribution

There has recently been increased interest in mineral exploration in Guyana from large mining companies. As mine developments go forward, one area of concern is the lack of capacity within the government for oversight of environmental and social impacts of the mining sector. Therefore, introduction to and compliance with World Bank/IFC environmental and social standards will be an important precedent within the mining industry.

IFC’s early engagement will assist in making Guyana Goldfields a leader in sustainable mining development initiatives. IFC will have a positive role assisting mine development, facilitating community and civil society partnerships, local economic development, skills transfer, building environmental management capacity, exploring sources and viability of renewable energy, and encouraging appropriate resource utilization and conservation practices.

This is a category B project as IFC will be funding exploration leading to the preparation of a feasibility study at the Aurora site. Additional exploration work may take place at the Peters site, although Peters mine development is unlikely before Aurora. Following completion of the feasibility study, it would be classified as a category A project prior to any financing of the development of the mine. In any future mine development (for which IFC would require a full ESIA), there is a strong case for a continuing IFC role where we can influence and direct the positive benefits.

The exploration concession areas lie within tropical moist forest. The concession is sparsely populated with the nearest known settlement some 53 km upstream of the main exploration area at Aurora. Although the concession is not close to any designated Amerindian areas, the company recognizes that it will interact with Amerindians and has already consulted with Amerindian organizations and will continue to work with them on development issues of mutual interest. There are no artisanal miners in the Aurora area, but some are present near the Peters property. Thus, for the initial exploration project, the potential environmental issues would be limited and associated with bio-diversity, drilling sites, water resources, soils, solid and liquid waste management, vehicle impacts, handling, use and storage of hazardous materials and reclamation of exploration areas. Social issues include minimization of induced development and influx management. These impacts can be minimized and mitigated with careful management.

There is no reported settlement within 50km of the main area under exploration at Aurora. The Cuyuni River serves as a transportation corridor, with several small boats per week passing by the camp. Occasional visitors to the Aurora Camp include Amerindians from a village about 53km upstream from the camp, usually seeking medical attention.
Location of environmental documents In locally affected community
Environmental documentation will be made available at the follwing locations:

-Guyana Goldfields Office:
7 North Road
Lacytown
Georgetown, Guyana

- Guyana Geology and Mines Commision,
Upper Brickdam, Stabroek,
Georgetown, Guyana,
Mr. Benn- Telephone: 592-225-3047

St. Cuthbert''s Mission
Linden Highway,
Georgetown, Guyana
Telephone: 592-261-2549