Following media reports in Ecuador regarding a potential referendum on mining in the province in which SolGold's Cascabel project is located, the Board of SolGold wishes to provide clarity on the situation.
Under Ecuadorean law, individuals are legally allowed to put forward petitions to the Constitutional Court for the inclusion of specific questions in a future vote. If that question is viewed as valid and constitutionally legal by the Constitutional Court the next phase is for the petitioning party to gain 10% of the signatures of the voting population of the provinces involved.
A public hearing is being held on 5 June 2019 where the Court will receive both arguments from the originator and the counter arguments from interested parties who oppose the validity of the question to determine whether the question regarding the future of mining is valid and constitutionally legal.
Following the process with the Constitutional Court the question must be approved by the Electoral Council in order to be included on future ballot papers for the provinces specified.
With strong support from the government, the international mining community operating in Ecuador and local communities, SolGold does not expect approval to be forthcoming from either the electorate or the Court.
There has been no indication from the Ecuadorean government that SolGold's tenure is at risk. The Cascabel project is a key project in Ecuador's developing mining industry and a critical driver for the future of Ecuador's economy. SolGold continues to receive full and objective support from the Ecuadorean government.
SolGold recently announced findings from its Preliminary Economic Assessment (PEA) for the Alpala deposit in the Cascabel project in Northern Ecuador. The project indicated approximately US$17 billion (at US$3.30/lb copper price and US$1300 oz gold price) in taxes, royalties and profit shares to the government and peoples of Ecuador. SolGold is committed to building an integrated explorer, appraiser and miner in the copper industry in Ecuador, and enjoys the support of two of its major shareholders, Newcrest and BHP.
The company currently employs approximately 500 Ecuadoreans, and its staff is 97% Ecuadorean. The project will provide substantial and ongoing support for local, and a variety of, Ecuadorean industries and companies, and provide a platform for growth in the GDP of Ecuador. SolGold aims to replicate this project on other locations thought the country as part of its plan to create an intergenerational company in Ecuador.
Read the article online at: https://www.globalminingreview.com/mining/31052019/solgold-responds-to-potential-mining-referendum-in-ecuador/