BISHOPGATE, LONDON / ACCESSWIRE / June 6, 2019 / Further to the announcement on 30 May 2019, SolGold confirms that submissions for a public hearing were received and heard in the Ecuadorean Constitutional Court yesterday regarding the proposed referendum on mining in the provinces in which SolGold's 85% owned Cascabel project and other wholly owned exploration projects are located. Representatives from a large number of Ecuadorean government bodies, employees, regional community representatives, pro-mining groups, international mining groups as well as members of the community from Cascabel attended the hearing to demonstrate their strong opposition to the proposal.
The Court heard arguments from many interested parties with the great majority opposing the proposed referendum. The Court subsequently adjourned and is expected to deliver its verdict by 24 June 2019. SolGold will provide a further update to the market in due course.
Furthermore, SolGold is pleased to note that the Vice President of the Republic of Ecuador, Otto Sonnenholzner, earlier this week launched a new Mining Policy for the country. The policy has six limbs, seven strategic objectives and seven public policies, all designed to strengthen investment and increase production in the mining sector as well as setting out a framework for environmental and social sustainability. The Vice President noted that the Government is supportive of the mining industry and described the sector as a fundamental axis of the country's economy.
The Cascabel project is a key project in Ecuador's developing mining industry and a critical driver for the future of Ecuador's economy in the view of the government. 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$17bn (at US$3.30/lb copper price and US$1,300oz 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 its major shareholders, including 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 throughout the country as part of its plan to create a multigenerational company in Ecuador.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of the Regulation (EU) No 596/2014 until the release of this announcement.
Qualified Person:
Information in this report relating to the exploration results is based on data reviewed by Mr Jason Ward ((CP) B.Sc. Geol.), the Chief Geologist of the Company. Mr Ward is a Fellow of the Australasian Institute of Mining and Metallurgy, holds the designation FAusIMM (CP), and has in excess of 20 years' experience in mineral exploration and is a Qualified Person for the purposes of the relevant LSE and TSX Rules. Mr Ward consents to the inclusion of the information in the form and context in which it appears.
