TORONTO, Nov. 10, 2022 /CNW/ - Adventus Mining Corporation ("Adventus Mining") (TSXV: ADZN) (OTCQX: ADVZF) and Salazar Resources Limited ("Salazar") (TSXV: SRL) (OTCQB: SRLZF) (collectively the "Participants") are pleased to announce that the Government of Ecuador through its investment institution, Investment Promotion and Attraction Strategic Committee (CEPAI by its acronym in Spanish), approved by Resolution No. 203-CEPAI-2022 dated November 1, 2022, the signing of the Investment Contract ("IC") between the Government of Ecuador and Adventus Mining Corporation, Salazar and the Participants' subsidiary Salazar Holdings Ltd. in support of the development of the El Domo copper-gold mining project ("El Domo").
Adventus Mining Corporation & Salazar Resources Limited logo (CNW Group/Adventus Mining Corporation)
For the El Domo foreign direct investment, the aforementioned Resolution by the Government of Ecuador grants Adventus Mining, Salazar and Salazar Holdings Ltd. the following incentives until March 2033:
-
5% Reduction in the income tax tariff from 25% to 20%
-
Total exemption from the capital outflow tax ("ISD" by its acronym in Spanish) in all import of capital goods and raw materials
-
Total exemption of import duties of capital goods and raw materials, including on all mine and mill related equipment
-
Approval of a special dispute resolution article, including international arbitration protection
-
Tax stability – all tax applicable laws will be frozen during the life of the contract unless there are new laws that benefit the Participants
-
Legal stability – all applicable laws related to the mining industry will be frozen during the life of the contract unless there are new laws that benefit the Participants
-
Other important incentives are expected to be included in the final contract specific to El Domo and economic development benefits for Ecuador
Christian Kargl-Simard, President and CEO of Adventus Mining, commented: "We are thrilled to have completed this significant approval milestone with the Government of Ecuador which allows Adventus Mining to further advance El Domo towards the start of construction in 2023 and to draw on our previously announced project financing facilities. We want to thank the government ministries and representatives for working closely with our team throughout 2022, and in reaching this mutually beneficial commitment to Ecuador to advance El Domo through construction to commercial production."
The Government of Ecuador and the Participants are expected to sign the final IC with the Minister of Production within 120 days. This is the third major production related IC between the Government of Ecuador and the metals and mining industry, after Lundin Gold's Fruta del Norte and EcuaCorriente's Mirador mines.
https://finance.yahoo.com/news/government-ecuador-approves-signing-investment-114500520.html