Mining Pledge - ColombiaOne possibility is that Galway and BMO have agreed to the terms of a Mining Pledge, more specifically a pledge without possession?
First, a general statement regarding mining pledges in Colombia.
See question and answer #12 (as well as #14) here:
https://www.latinlawyer.com/reference/topics/46/jurisdictions/8/colombia/
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Also, Mining Code of Colombia
ACT 685 OF 2001, Mining Code
CHAPTER XXIII
Mining Guarantees
See Articles 237 to 247 on
pages 59 to 61.
https://colabogadosminpetrol.com/XDSDF592458jklsd238500945jklJLFDm/mining_code.pdf
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To expand on this, see pledge details (Colombia) in this next link.
“The pledge is governed by the Civil Code and the Code of Commerce and may have the form of a pledge where the creditor has the possession of the pledged assets (pledge with possession) or a pledge whereby the creditor does not have possession of the pledged assets (pledge without possession) and the pledgor becomes a depositary of the assets and must keep them in proper condition. The pledge without possession is only admitted when the assets are deemed necessary for the development of the economic activity of the debtor. The pledge without possession could be created to guarantee future obligations of a debtor provided that a limit to the value of and a term to the pledge are established in the relevant agreement”.
See the very bottom of page 101; then more on page 102:
https://www.lexmundi.com/images/lexmundi/PracticeGroups/BankFinance/SOCsurvey/Security_Over_Collateral_Compilation.pdf
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In short, this is similar to an unsecured loan here (we all know there's really no such thing as 100% unsecured anywhere in the world; even between family members).
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