Dual-listed SolGold on Tuesday announced that the release of the prefeasibility study (PFS) for the Cascabel project would be delayed, to assess certain upside options that could deliver a more robust value for the northern Ecuador project.

Upside options under review include earlier underground access, mine and mill optimisations, extending Cascabel resources and hydroelectric power. These options offered further optionality and potential for improved economics, the company said.

SolGold recently appointed a new CEO and MD, Darryl Cuzzubbo, who is starting on December 1.

The exploration and development firm noted that the PFS was well progressed and that it would announce a new timeframe for the completion of the PFS at the upcoming annual general meeting on December 15.

Meanwhile, SolGold also announced that it had signed a preliminary commitment declaration for an exploration investment protection agreement (IPA) for Cascabel.

The terms of the IPA, submitted by application to the Ministry of Production, Foreign Trade, Investments and Fisheries, include an intention to invest $430-million over the 10 years between 2013 and 2023 in minerals exploration activities in the Cascabel mining concession. This includes both historical investments, totalling about $238-million, estimated through to the end of 2021, and planned future investments through to the end of 2023, when the exploration phase of activities as defined under the mining law is anticipated to finish.

Once the IPA has been executed, the Ecuadorian State would grant the SolGold investor companies the applicable protections and guarantees in accordance with the law. Specific protections relate to the prohibition of all forms of confiscation, non-discriminatory treatment and equal playing field, legal security, tax stability for 15 years and international arbitration in London if there are any disputes in relation to the Cascabel project.

"Under the terms of this agreement, SolGold's investors will enjoy increased protection of their key investment in Ecuador.

“This was a major effort by the parties involved and the inclusion of a well-drafted dispute resolution clause, with arbitration in London abiding to the rules of the International Chamber of Commerce will provide us with confidence for the upcoming project finance process,” said acting CFO Ingo Hofmaier.