Canadian junior Tesoro Minerals’ stock plunged on Friday, after the company revealed that its right to acquire mineral concessions in the Tambo Grande district of Peru has been rescinded.
Tesoro reported that Peru had passed a supreme decree, which repealed previous decrees that had granted the company the right to acquire and hold minerals rights on 21 concessions located in the department of Piura.
The decree reportedly stated that there was a re-evaluation of the socioeconomic situation in the Tambo Grande district.
“The company is consulting with its Peruvian legal counsel and regulatory advisers to consider appropriate actions and potential avenues of redress available to the company,” it said in a statement.
Shares in Tesoro fell 33% on the TSX-V to close at C$0.09 a share.