Looks like a long term gain here with obtaining a new permit to set production up for success. Some are selling as likely seen as another delay. Seems like all governments are supportive and the contractor is well aware of this event planned months month yet announced last week. That is likely the delay in the 2md confirmation payment by the contractor that binds them into the contract to produce.
From Mexico Mike:
I applaud that Terry has pre-empted the expected propaganda from the corrupt opponents to development. It seems like the administrative lobster trap is gradually being resolved and I still see the Company evolving to become a dynamic gold production growth story. Reducing the size of the property area to trim away portions of the land position that were never of interest may also save a few bucks in taxes. Hopefully the JV will advance very quickly so that news flow regarding production numbers and recurring income can become the story for a while going forward.
cheers!
mike
From Latest PR:
The new application reduces the area of operations from 42,000 ha to 25,000 ha. The excluded areas are specifically mentioned in the Jakarta Lawsuit and include protected forested area, shoreline, or urban areas. These areas were always outside of the Company's original work plan and are not gold-bearing. This new reduced area only includes the gold-bearing area on Sangihe Island, where the Company always intended to base its operations. For the Company, there are several financial benefits and no negative consequences in reducing the area covered by the request for Production Operation Status. For MEMR, the area reduction allows them to comply with the decision of the Jakarta Lawsuit and greatly simplifies the Stage of Activity Upgrade approval.
As all requirements by the MEMR are met in the new application, Indonesian law guarantees the Stage of Activity upgrade to Production Operation Status. The upgrade is an administrative step protected by the Company's CoW. As the Jakarta Lawsuit reached the Supreme Court, there cannot be additional lawsuits on the same issue.
To reiterate, the Company initiated the request to the MEMR to cancel the current Stage of Activity Upgrade Status so it could obtain a new one. The cancellation has no impact on the Company's permits or CoW, which are all valid and remain in good standing. The cancellation will bring the MEMR into compliance with the Jakarta Lawsuit. The area reduction avoids environmentally sensitive areas on Sangihe Island, are non-gold bearing and were always outside the Company’s planned area of operations.