Silvercorp Metals (TSX: SVM) has seen a positive ruling in the Ecuadorian courts related to its El Domo copper project, acquired through a merger with Adventus Mining earlier this year.
The company has seen the Provincial Court of Bolivar dismiss an appeal filed by plaintiffs related to a constitutional protective action at Curipamba – El Domo, enabling construction of the project to proceed. The lawsuit was related to an accusation that the Ministry of Environment, Water and Ecological Transition of Ecuador had not properly discharged environmental consultation obligations before issuing the environmental license for the project.
The lower courts found that proper protocol had been followed, and the subsequent appeal has now been dismissed.
READ: Silvercorp Initiates Construction On El Domo Copper Mine In Ecuador
Separately, Silvercorp has indicated that a US$13.25 million early deposit has been repaid to Wheaton in relation to the El Domo project. A precious metals purchase agreement had required that 92.3 ounces of gold be delivered on a monthly basis until certain construction milestones were met or funds were repaid.
The El Domo project is expected to produce 23,000 tonnes of copper equivalent on an annual basis. The project boasts a $259 million after tax net present value (8%), based on $3.50 per pound copper and $1,700 per ounce gold. The project was acquired via the C$200 million acquisition of Adventus earlier this year.
Silvercorp last traded at $5.60 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
