Business
SolGold announces exploitation contract for Cascabel project (Pink Current Info:SLGGF)
erlucho/iStock via Getty Images
- Miner SolGold (OTCPK:SLGGF) on Thursday announced the signing of the Exploitation Contract for the Cascabel Project, its flagship copper-gold project in Ecuador.
- The EC and existing legislation and regulations establish the legal and financial terms and conditions required for the Cascabel Project’s development.
- “The Government of Ecuador supports the Cascabel Project, which will bring substantial long-term benefits to our country’s economy and local communities through significant investment, job creation, and sustainable growth,” Diego Ocampo, Vice Minister of Mines, stated.
- Exploraciones Novomining S.A, SolGold’s (OTCPK:SLGGF) wholly owned subsidiary in Ecuador, embarked on an exploration journey at Cascabel in 2012, leading to the major discovery hole at Alpala in early 2014, and the subsequent discovery of Tandayama-AmerÃca deposit in later drill programs.
- The EC provides that the Government of Ecuador’s share of cumulative discounted benefits derived from SolGold’s Cascabel Project will be at least 50%.
- SolGold will make an advance royalty payment totaling $75 million, with the first payment of $25 million due upon the concentrator construction start date. The remaining two payments, each of $25 million, will be made on the first and second anniversary, respectively, from the date of the first payment. The advance royalty will be deductible against the Government Royalty.
- Furthermore, once the Government of Ecuador approves the new Investment Protection Agreement, the company expects a corporate income tax rate of 20% during the Project’s life.
- Source: Press Release
Source link
