Some Sonora news ....29 Aug 2023 20:44
Maybe we'll get something from our BoD maybe not .... found this earlier from Ganfengs interims & thought we should all be aware regardless those who aren't already anyways .... also figured there isn't much currently in our SP for Sonora anyway so what the hey!! .... looks like they're potentially still talking/challenging but who knows from here......
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While the Company was holding discussions with the Secretary of Economy as described above, the General Directorate of Mines (“DGM”) initiated a review of nine of the lithium concessions held by the Mexican Subsidiaries, including the principal lithium concessions for the Sonora Project. According to the DGM, if the Mexican Subsidiaries failed to submit sufficient evidence within the specified timeframe to prove that they had complied with minimum investment obligations
for the development of lithium concessions in 2017–2021, there was a risk of cancellation of the above-mentioned lithium concessions. As of May 2023, the Company’s Mexican Subsidiaries had submitted extensive evidence of their compliance with the minimum investment obligations of the above-mentioned lithium concessions in a timely manner. However, the DGM has issued a formal
decision notice to the Mexican Subsidiaries in August 2023, indicating that the above-mentioned nine lithium concessions were cancelled.The Company believes that the Mexican Subsidiaries have complied with their minimum investment obligations, as required by Mexican law. Indeed, the mine development investment by the Mexican Subsidiaries has significantly exceeded the minimum investment obligations, and the Mexican Subsidiaries regularly submitted to the DGM annual reports for the 2017–2021 periods detailing their operations within the prescribed period annually. The Mexican government did
not raise any objections until it recently notified the Company that the minimum investment obligations were allegedly not met, and it took action to cancel the lithium concessions.
The lithium concessions’ cancellations issued by the DGM are not final. Depending on the progress of the Company’s further actions and the outcome of the above-mentioned matters, whether the cancellations will be revoked or
maintained in place, and the scope of the concessions affected are still uncertain.
There is still uncertainty as to whether the above-mentioned matters may cause the Company to incur asset impairment losses, and whether they may have a certain negative impact on the results of the Company.
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