3rd Nov 2014 09:34
LONDON (Alliance News) - Metminco Ltd Monday said it expects the Chilean Constitutional Tribunal to hand down the decision on its appeal regarding the interpretation of various mining and civil codes by the end of the year.
Back in March, the Appeal Court in La Serena ruled that the company's First Easement Extension, which would have enabled it to engage in mining activities, was invalid on the basis of its interpretation of various mining and civil codes. Its Chilean assets include the Mollacas Copper project.
"It is anticipated that the Tribunal will hand down a decision by the end of 2014, potentially enabling the company to progress its development plans for the robust Mollacas Project in early 2015," said Managing Director William Howe in a statement.
It said that further work on the Mollacas feasibility study has been delayed, pending the decision by the tribunal.
Metminco said it held cash of around AUD2.5 million at the end of September.
It said it continues its strategy to acquire a near term cash flow project, having recently evaluated several potential opportunities in Australia and South America.
Metminco also said that work has started on further constraining the high grade copper and molybdenum zones within the Los Calatos Porphyry Complex to create the basis for investigating alternative development options, such as a smaller, high grade mining operation. The Los Calatos project is located in southern Peru.
"We have initiated further investigative work at Los Calatos aimed at assessing the potential to deliver a more robust and cost efficient mining operation that focuses initially on the high grade zones developed within the porphyry complex," said Howe.
The company said the recent final endorsement by the National Superintendent of Public Assets will secure the right to purchase the surface titles required for development of the Los Calatos Project for a period of six years.
Metminco shares were trading 2.2% lower Monday at 0.670 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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