25th Aug 2006 14:22
Patagonia Gold PLC25 August 2006 Patagonia Gold Plc ("Patagonia Gold" or the "Company") Trading Symbol PGD.L Patagonia Gold Plc (PG or the company) refers to the introduction in theProvince of Chubut of a provincial law banning for up to three years mining andminerals exploration activities (except for alluvial gold exploration) in aspecified area on the west side of the Province. PG has been advised by its Argentinean lawyers that this provincial law violatesthe company's constitutional right to perform mining and mineral explorationwithin a legal and regulated industry. In order to protect the company's investments and to preserve it's legal rightto keep performing mining and mineral exploration on its properties, PatagoniaGold SA and Huemules SA, both fully owned subsidiaries of PG, have today filed alegal action against this provincial law through the submission of an injunctionin the Civil, Commercial and Mining Court of the City of Rawson (Juzgado dePrimera Instancia en lo Civil, Comercial y Minas de la Ciudad de Rawson). PG has always adhered to the highest environmental standards in its explorationactivities and is totally supportive of ensuring that all exploration and miningactivities conducted in Chubut are in accordance with the highest internationalstandards endorsed by the mining industry and as set out in the SustainableDevelopment Framework, to which the company adheres. The plans for the development of the Huemules Mine for which PG has filed anapplication for an Environmental Impact Study for the drilling phase, do notinvolve any open cast mining or the use of cyanide. Sir John Craven, Chairman, says that: "While challenging the law in the courts, PG welcomes any opportunity forconducting an open and objective study of the environmental implications ofmining and exploration in the Province and the publication in due course of theconclusions of that study. This should remove the uncertainties that haveinhibited the development of a viable and environmentally sound mining industryin Chubut, with all the benefits to the community in terms of employment and taxrevenues that could flow from this and create a climate in which the miningindustry and the communities can work together in harmony with sharedobjectives. To this end PG would be delighted to work with the Government and its experts toassist in the development of Code of Conduct for the mining and exploration ofminerals in Chubut". PG is also actively engaged in exploration on a number of highly prospectiveproperties outside of this restricted area and has recently taken steps toexpand these activities into other provinces where mining activities are longestablished including Santa Cruz and San Juan provinces. ENDS For more information, please contact: Bill Humphries, Chief ExecutivePatagonia Gold PlcTel: + 44 (0)20 7409 7444www.patagoniagold.com Anthony Cardew/Tim RobertsonTel: +44 (0) 20 7930 0777Fax: +44 (0) 20 7925 0647Email: [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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