K2 Gold Walks From California Gold Property Citing “Political Interference At The Highest Levels”
K2 Gold (TSXV: KTO) is waiving the white flag on its Mojave project in California. The firm is walking away from the project after the Bureau of Land Management insisted that a full environmental impact statement be filed for a planned phase 2 drill program on 12.2 acres of land.
Classifying the move as an “indefinite suspension of activities,” the company this morning said it is refocusing its efforts on “acquiring and advancing high quality projects in jurisdictions more favourable to mineral exploration.” Management changes have also been made following the decision to leave behind the project.
The decision to toss in the towel in the project follows the BLM requiring a new environmental impact statement for a small drill program, after prior acceptance of an amended submission in March 21. The EIS process is stated to take over a year to complete at significant cost.
“The decision to force K2 to complete an EIS for a modest drill program is absurd and points to political interference at the highest levels. An EIS is a regulatory hurdle usually reserved for mine construction and is a sad indictment as to the future of mineral exploration and possibly mining in the United States, particularly within the State of California,” commented Chairman John Robins.
Following the decision to abandon Mojave, the company now intends to focus on the western USA for project development, with the Si2 project, found in Nevada, said to be the first step in this direction. The company optioned the property from Orogen Royalties in January for cash payments of $2.5 million and work commitments of a further $2.5 million. A 2% NSR was also applied to the deal.
Mojave was K2’s flagship project for the last two and a half years after acquiring it in 2019. To date, the company had paid $0.6 million in cash and issued 1.44 million shares as part of the option arrangement, with the property currently amount to $7.4 million in assets on the firms balance sheet following continuous expenditures over the last several years. The property amounts to roughly 70% of the firms total exploration and evaluation assets.
As part of the move, CEO Steve Swatton, who spent the last two and a half years dedicated to the Mojave project, has stepped down from his leadership role while electing to remain on the board of directors. President Anthony Margarit will be taking on the role of CEO, while John Robins will take on the role of Executive Chairman.
K2 Gold last traded at $0.19 on the TSX Venture.
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