28th Mar 2014 12:12
LONDON (Alliance News) - Metminco Ltd Friday said a Court of Appeal in Chile has ruled that the company's First Easement Extension, which allows the company to engage in further mining activities at the Mollacas Copper Project, is invalid and void on technical grounds.
The exploration and development copper-mining company, with operations in Peru and Chile, said the judgement was based on a technicality related to a Judge's decision to approve the First Extension over the property in November 2011 when it was not owned by Metminco, despite the company being a related party and despite a change in the area and purpose of activities since the original easement.
However, the company said the Court of Appeal confirmed that the Original Easement permitting access to the company's Mollacas project for exploration and exploitation concessions and granted in 2004, remains current and in full force and effect.
As such, Metminco said it will continue to conduct its planned Feasibility Study and Environmental Impact Study at the site.
Metminco said it intends to vigorously appeal the decision with respect to the First Extension and will lodge an appeal to the Supreme Court of Chile no later than April 3 as it believes the ruling is not consistent with the current Mining Legislation in Chile that allows for the extension of an easement.
The company holds title to 20 Exploitation Concessions covering the Mollacas deposit and surrounding area, and owns 179 hectares of land adjacent to the proposed open pit operation which is located on private land.
Metminco shares were down 12% to 1.33, putting it among the top AIM fallers Friday.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Metminco