Coro Mining Corp.: Provincial Legislature Denies Ratification of San Jorge Environmental Impact Declaration
August 25 2011 - 2:38PM
Marketwired
Coro Mining Corp. ("Coro" or the "Company") (TSX: COP) regrets to
announce that the Provincial Legislature of Mendoza has voted
against the ratification of the Company's approved Environmental
Impact Declaration ("EID"), notwithstanding that the EID was
conditional, inter alia, upon the Company's Argentinean subsidiary,
Minera San Jorge ("MSJ"), complying with the highest standards of
environmental protection, control and monitoring prior to, and
during the construction and operation of the project. Over the past
3 years, Coro has strictly complied with all laws and regulations,
including the 7722 law which required the ratification of the
approved EID, and has made every effort to ensure that the
legislators were fully informed about the project. In addition, a
Mendoza court recently determined that the process which led to the
approval of the EID was neither illegitimate nor arbitrary, and
therefore fully complied with provincial law.
As recently as August 24th, the head of the Lower House
confirmed that the ratification vote would take place after the
elections scheduled for October, in order that the decision could
be taken based on the merits of the project and not on a
calculation of electoral advantage. Unfortunately, the vote took
place in any event, without consideration of the conclusions of the
legislature's commissions who have spent the last several months
evaluating the EID, and more pertinently, the validity of the
process which led to its approval. The decision to not ratify the
EID was taken against the clearly expressed wishes of the current
government, with whom the Company was in advanced discussions aimed
at delivering a carried 10% interest in MSJ to the province.
Coro will now consider its alternatives to seek legal redress
and compensation through the Argentinean and international courts.
In particular, the 7722 law is currently subject to legal
challenges of its constitutionality by Coro and several other
parties. We anticipate that this lawsuit may be resolved by mid
2012 and in the event that the courts find that the law is indeed
unconstitutional, the denial of legislative ratification of the
Company's valid and approved EID, may be deemed to be null and
void.
Finally, we wish to express our gratitude to the people of
Uspallata who had supported the development of San Jorge. We
sincerely regret the rejection our project by your elected
representatives, especially given the rigorous review and
consultation process that has taken place over the past 3 years.
Coro had hoped to work with you in raising your living standards
and demonstrating the economic and social benefits that San Jorge
could have brought to your community; unfortunately, this
opportunity has now been denied to us.
CORO MINING CORP.
Alan Stephens, President and CEO
About San Jorge:
The San Jorge copper-gold project is located in Mendoza,
Argentina. The Company completed an independent Preliminary
Economic Assessment ("PEA"), in April 2008 which contemplated
production of 39,500 tonnes of copper per annum and 39,000 ounces
of gold per annum over a 16 year mine life. The deposit remains
open at depth and using a $2.00 per pound copper and $600 per ounce
gold price returned an after tax NPV of $220 million, with a
capital expenditure of $277 million.
Alan Stephens FIMMM, President and CEO of Coro, a geologist with
more than 35 years of industry experience is the Qualified Person
for Coro who has reviewed and approved the contents of this News
Release. In respect of the PEA, it should be noted that mineral
resources that are not mineral reserves do not have demonstrated
economic viability.
About Coro Mining Corp.:
The Company was founded with the goal of building a mining
company focused on medium-sized base and precious metals deposits
in Latin America. The Company intends to achieve this through the
exploration for, and acquisition of, projects that can be developed
and placed into production. Coro's properties include the advanced
San Jorge copper-gold project, in Argentina, and the Chacay, Berta,
Llancahue and Celeste copper exploration properties located in
Chile.
This news release includes certain "forward-looking statements"
under applicable Canadian securities legislation. Such
forward-looking statements or information, including but not
limited to those with respect to the prices of copper, estimated
future production, estimated costs of future production, permitting
time lines, involve known and unknown risks, uncertainties, and
other factors which may cause the actual results, performance or
achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements or information. Such factors
include, among others, the actual prices of copper, the factual
results of current exploration, development and mining activities,
changes in project parameters as plans continue to be evaluated, as
well as those factors disclosed in the Company's documents filed
from time to time with the securities regulators in the Provinces
of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New
Brunswick, Nova Scotia, Prince Edward Island and Newfoundland and
Labrador.
Contacts: Coro Mining Corp. Michael Philpot Executive
Vice-President (604) 682-5546 investor.info@coromining.com
www.coromining.com
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