SolGold PLC - Brisbane, Australia-based developer of copper-gold deposits in Ecuador - Signs letter with Ecuador President Guillermo Lasso providing protections for Cascabel mine in the north of the country. A preliminary commitment declaration for an exploration investment protection agreement was signed on Friday last week in Quito. The accord sets out SolGold's intention to invest about USD430 million in Cascabel over the 10 years from 2013 to 2023, of which USD238 million has already been spent. The investment will take the project through its exploration phase. In return, the Ecuador government grants SolGold protections, including "the prohibition of all forms of confiscation, non-discriminatory treatment and equal playing field, legal security, tax stability for 15 years and international arbitration in London if there are any disputes", the company explains.
SolGold says it will delay the release of the pre-feasibility study for Cascabel, to allow its new chief executive officer, Darryl Cuzzubbo, who starts on December 1, to get his feet under the desk. An update on when the study will be released will be provided at SolGold's annual general meeting on December 15.
SolGold also says it get a "very encouraging result" from the first hole to be drilled at its Rio Amarillo project, also in northern Ecuador. The 1,052 metre downhole depth hole returned 72 metres at 2.16 grammes of gold per tonne, including 24 metres at 5.77 grammes.
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By Tom Waite; thomaslwaite@alliancenews.com
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SolGold (SOLG)