15th Jul 2024 12:55
(Alliance News) - Adriatic Metals PLC on Monday noted comments from the Constitutional Court of Bosnia & Herzegovina, recommending the repeal of a federal law permitting the removal of state forest for temporary use.
Adriatic Metals shares were down 5.6% at 186.15 pence on Monday afternoon in London.
The Cheltenham, England-based exploration and development company has a portfolio of licences in Bosnia & Herzegovina and Serbia.
The court, Adriatic said, believes that the federal law should be repealed because "the competent authority should be the state rather than the federation".
Adriatic expects the court to publish its decision in full "in the coming days".
Adriatic said it assumes the court's decision will delay the removal of trees on the site of its extended tailings storage facility, for which construction is due to start "in the coming months" at the Vares processing plant site.
The company added that "every major project in the federation could potentially be impacted".
Adriatic said it will continue using its current tailings storage facility, which has capacity to continue receiving material until the first quarter of 2025, while it waits for the court to publish its full decision.
"Adriatic is also reviewing the possible permitting of several alternative tailings storage facilities within the company's concession area," it continued, "however the full decision of the court will need to be reviewed before any alternative options are progressed."
Adriatic added that it will review the full decision to determine what, if any, impact it could have on future operations at the Vares silver project.
"Adriatic is working closely with all levels of government to have a greater understanding of the court's decision and we will remain committed to complying with all the laws of Bosnia & Herzegovina," commented Chief Executive Officer Paul Cronin.
"Operations at the Vares silver project are continuing as planned and we will provide an update on production in the Q2 quarterly activity report in the coming weeks."
By Emma Curzon, Alliance News reporter
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