VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 19, 2014) - Mr. George Salamis, President and CEO of Edgewater Exploration Ltd. ("Edgewater" or the "Company") (TSX VENTURE:EDW) is pleased to provide a corporate update regarding the current status of on-going discussions relating to the Company's 100% owned Corcoesto Gold Project (the "Corcoesto Gold Project") in Galicia, Spain.
Edgewater is pleased to announce that over the past few months it has been in negotiations with various parties interested in the opportunity to advance the Corcoesto Gold Project. The Company is continuing these negotiations and is working diligently to find the right partner for the Corcoesto Gold Project. At this time, Edgewater anticipates that negotiations will move forward with a particular partner that management believes is best suited to advance the Corcoesto Gold Project. These negotiations contemplate a strategic partnership aimed at benefitting the local communities surrounding the Corcoesto Gold Project in the most environmentally sustainable manner. Management believes that the potential transaction with this strategic partner would have positive benefits for Edgewater and its shareholders and will satisfy the project permitting criteria set forth by the Government of Galicia.
President and CEO, George Salamis, states, "We remain firmly committed to advancing the Corcoesto Gold Project. We understand the final criteria that are necessary to obtain all of the remaining permits to advance the project to construction and production. To assist in achieving the final permitting requirements we are now in very advanced discussions with a party we believe is the best potential partner to advance the Corcoesto Gold Project. This party has significant infrastructure build-out experience as well as experience in many other industries. Their balance sheet is strong and their technical expertise is broadly recognized. Over the past three years Edgewater has historically enjoyed support and approval from many levels of government, and it was mostly on this basis that we have invested in advancing the project. Since 2009, Edgewater has spent over $25 million to advance the project through acquisition, exploration, resource definition drilling, preliminary economic studies, permitting phases and onto final feasibility studies."
The Company cautions that there are no guarantees that these negotiations will result in a transaction, or if a transaction is undertaken, as to its terms or timing. Further updates will be provided to Edgewater's shareholders as these negotiations are further advanced.
Additionally, Edgewater has received official documentation in follow-up to a press release dated October 16, 2013 that, according to the Galician Government, the Company has not complied with the criteria to obtain all necessary permits to advance the Corcoesto Gold Project. As announced in a July 10, 2013 press release, among other things the Company was required to demonstrate its technical expertise and financial ability to fund development of the Corcoesto Gold Project, notwithstanding the fact that the feasibility process has not yet been completed. The Galician Government stated on July 10, 2013 that Edgewater and its subsidiary were obliged to show funding sources within their various accounts in the amount of EUR30 million or be in a position to point to a partner's balance sheet that can satisfy this amount, which is approximately 25% of the total capital costs estimated by the Company in its previous engineering studies. These criteria have not been complied with, and therefore the permitting applications have been cancelled. Once the Company complies with the criteria, it can re-apply for all remaining permits.
On December 17, 2012, Edgewater announced the approval of the Environmental Impact Statement (EIS) by the Ministry of Environment, Territory and infrastructure of the Government of Galicia, which remains a major milestone in the permitting process. As per recent discussions with the government, the EIS has recently been confirmed valid for five years from the date of approval (to December 2017).
About Edgewater Exploration Ltd.
Edgewater is a mineral development and exploration company focused on the development of precious metal properties. Edgewater has an experienced mine building and operating team with a track record of success. The Company is currently developing the Corcoesto Gold Project in Galicia, Spain and exploring the Enchi Gold Project in Ghana, West Africa.
On behalf of the board of EDGEWATER EXPLORATION LTD.
George Salamis, President and CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
Certain of the statements and information in this news release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities legislation. In certain cases, forward-looking statements or information can be identified by the use of words such as "believe", "intend", "may", "will", "should", "plans", "anticipates", "believes", "potential", "intends", "expects" and other similar expressions. Forward-looking statements and information relate to, among other things: the intention of the Company to consummate a transaction with a strategic partner and advance the Corcoesto Gold Project; the intention of the Company to re-apply for permits; and our goals and strategies.
Key assumptions upon which the Company's forward-looking statements and information are based include the following: the Company's ability to successfully identify suitable partners, negotiate the terms of the transaction and satisfy all conditions required to complete the transaction; the price of gold will not fall significantly; the Company's ability to secure new financing to continue its exploration and development activities; there being no significant changes in the ability of the Company to comply with environmental, safety and other regulatory requirements; the Company's ability to re-apply for remaining permits; and the Company's ability to achieve its growth strategy. These assumptions should be considered carefully by readers. Readers are further cautioned that the foregoing list of assumptions is not exhaustive. Although the Company believes that the assumptions on which the forward-looking statements or information are made are reasonable, based on the information available to the Company on the date such statements were made, no assurances can be given as to whether these assumptions will prove to be correct.
Forward-looking statements or information are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements or information. Such risks, uncertainties and other factors include among others, the following: the Company may not be able to successfully identify a suitable strategic partner, negotiate acceptable terms or obtain all applicable government, regulatory and shareholder consents required to complete the transaction, that the terms of those consents may not be acceptable to the Company, or, assuming the Company is able to successfully complete the transaction, the Company is not able to achieve expected results following such transaction; gold price volatility; mining development risk; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign investment; currency fluctuations; speculative nature of gold exploration; global economic climate; ability to obtain financing; dilution; share price volatility; competition; loss of key employees; additional funding requirements; and defective title to mineral claims or property, as well as those factors discussed under the heading "Risk Factors" in the Company's management discussion and analysis for the period ended September 30, 2013, which is available on SEDAR at www.sedar.com. Should one or more of these risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements and information.
The forward-looking statements and information contained in this news release are made as of the date indicated in that information and, accordingly, are subject to change after such date. We do not undertake to update any forward-looking statements or information, except as, and to the extent, required by applicable securities laws. For the reasons set forth above, investors should not place undue reliance on forward-looking statements and information. The forward-looking statements and information contained in this news release are expressly qualified by this cautionary note.