21st Jun 2019 10:17
(Alliance News) - Share rose in SolGold PLC on Friday after an Ecuadorian court "definitively" rejected a petition heard in early June proposing a referendum on mining in the province where the Cascabel project is located.
Shares in the miner were 19% higher at 34.07 pence in morning trade. SolGold currently holds 85% of the Cascabel project.
The Ecuadorian Constitutional Court rejected the petition on the basis of technicalities, leading to the petition and the case being closed.
SolGold said the formal resolution of the court that will go into more detail on the rejection of the petition is yet to be published.
Earlier in June, a petition was put forward proposing the referendum. Under Ecuadorian law, individuals can put forward petitions to include questions in a future vote. They must gather signatures from 10% of the voting population in the province concerned.
The court then received arguments from those who put forward the referendum, as well as those that opposed it.
SolGold said that representatives of government bodies, regional communities, pro-mining group and members of the Cascabel community came forward to demonstrate their opposition to the petition.
"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, who, most recently, publicly stated that Cascabel has the potential to become one of the world's largest copper, silver and gold mines on June 12," the company said.
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