TSX- and NYSE-listed Orla Mining has informed its shareholders that the Panamanian Ministry of Commerce and Industry has rejected the company’s requests for an extension for three mining concessions comprising the Cerro Quema gold/copper project.
The company points out that the Ministry has also declared the area comprising the concessions as a reserve area.
The follows after the Panamanian National Assembly in November passed new legislation, instituting a moratorium on the granting, renewal or extensions of concessions for the exploration, extraction, transportation or exploitation of metal mining in the country.
“While the company regrets this decision by the Panamanian government, the company will continue to monitor developments in Panama, which remain uncertain and quickly evolving.
“However, until the company has greater certainty with respect to the mining concessions, as well as fiscal and legal stability in Panama, the company will not consider additional spending towards the development of the Cerro Quema project,” it says.
It adds that it will explore all legal remedies available to it to protect is historical investments and potentially unlock additional value for its stakeholders, including taking measures to protect its rights under international law.
To date, the company has invested more than $120-million in Panama.