Guyana, officially the Co-operative Republic of Guyana, is a sovereign state on the northern coast of South America. Guyana was originally colonized by the Netherlands, however later became a British colony and remained so for over 200 years until it achieved independence on May 26, 1966 from the United Kingdom. On February 23, 1970, Guyana officially became a republic. Guyana is a member state of the Commonwealth of Nations and is the only South American nation whose official language is English. Guyana is bordered by Suriname to the east; Brazil to the south and southwest; Venezuela to the west; and the Atlantic Ocean to the north. The country's total population is approximately 770,000 people and the capital is Georgetown, where Guyana Goldfields operates a second office.

The economy is heavily dependent upon the export of six commodities - sugar, gold, bauxite, shrimp, timber, and rice - which represent nearly 60% of the country's GDP. The country has a long history of gold production and it is the largest export.

Guyana Goldfields signed a Mineral Agreement with the Government of Guyana and has received the Mining License in November 2011 to operate and build the Aurora Gold Project. Significant among the terms include:

  • Mining royalty of 5% on gold sales at a price of gold of US $1,000/oz or less
  • Mining royalty of 8% on gold sales at a price of gold of US $1,000/oz
  • Corporate income tax rate of 25% and no withholding tax on interest payments to lenders; and
  • Duty and value added tax exemptions on all imports of equipment and materials for all continuing operations at the Aurora Gold Project, including the construction and operation of a planned port facility, road and power improvements and the construction and operation of the mine.

Guyana contains one of the most highly prospective, yet under-explored, gold regions in the world. It has a long history of alluvial gold production. The Company’s assets are located within the greenstone belt of the Guiana Shield which is home to various multi-million ounce gold deposits. The Guiana Shield has been correlated with the Leo-Man Shield of West Africa, and it is generally accepted that prior to the opening of the Atlantic during the Mesozoic the two shields formed a contiguous craton, known as the “supercontinent”.