Solgold stock sinks again on mooted Ecuador mining referendum

Representatives from several Ecuadorean government bodies, regional community representatives, pro-mining groups, international mining groups workers and community members from Cascabel attended the hearing to demonstrate their opposition to the proposal, Solgold said in a media release.  

The court is expected to deliver its verdict by June 24.   

Earlier in the week, the vice president of the Republic of Ecuador, Otto Sonnenholzner, launched a new mining policy backing large-scale projects in the country. The policy is designed to strengthen investment and increase production in the mining sector and sets out a framework for environmental and social sustainability.

The policy document establishes the framework for mining sector planning for the period 2019-2030 and defines the government decision that will allow consolidating this sector as a fundamental axis of the country’s economy, with a contribution to GDP of 4% by 2021.  

SolGold recently announced findings from its preliminary economic assessment (PEA) for the Alpala deposit in the Cascabel project in northern Ecuador. The project indicated approximately $17B (at $3.30/lb copper price and $1,300oz gold price) in taxes, royalties and profit shares to the government and peoples of Ecuador, Solgold said. 

Solgold’s stock was down 8.6% Thursday morning on the Toronto Stock exchange. The miner’s stock has been trading low amidst worries surrounding the proposed referendum