PERTH (miningweekly.com) – The share price of junior Dragon Mining dropped by more than 17% on Monday after the company announced that the Finland Regional State Administrative Office (AVI) had rejected the company’s application to extend its environmental permit at the Orivesi gold mine.
Since the application was submitted in 2010, Dragon has made significant improvements to the mine environment at the project, including particularly the water quality. The company said that with this in mind, it intended to appeal the ruling in the Vaasa Administrative Court, and if required, the Finnish Supreme Court.
Dragon Mining had until January 8 to lodge an appeal.
The miner told shareholders on Monday that the ruling by the AVI was not considered binding until the appeals had been processed by the court, meaning that the Orivesi mine could operate under its current permit.
The Orivesi mine initially produced gold between 1994 and 2003, and resumed operations in 2007. Since its inception, the mine has produced more than 500 000 oz of gold in concentrate.
Dragon Mining shares were trading at a low of 14.5c each on Monday.