Adventus Mining Corporation (TSXV: ADZN) and Salazar Resources Limited (TSXV: SRL) have confirmed that the Government of Ecuador has signed the Investment Contract (IC) in support of the development of the El Domo copper-gold mining project.
The IC was originally reported on November 10, 2022 as being approved for signing by the Government of Ecuador through its investment institution, Investment Promotion and Attraction Strategic Committee (CEPAI).
Since then, additional bespoke changes relevant to El Domo development and future operations were approved, including protective arbitration and dispute resolution language approved by the auditor general.
Along with the financial, tax and legal incentives previously released, the IC provides El Domo with the following benefits until March 2033, with the potential for future extension:
Exemption of import and export duties, and the ability to import contractor equipment from free-trade countries without duties;
Guarantees on powerline and road upgrade and construction approvals;
- Approval of a special dispute resolution article, including international arbitration protection. Jurisdiction in New York with English language;
- Free transfers abroad of cash profits earned, and;
- Free transfer of cash obtained from the partial or full liquidation of the investors from the sale of shares, equity and/or rights acquired, once corresponding tax obligations and other responsibilities have been fulfilled.
“As 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, this is a major step forward for El Domo,” President and CEO of Adventus Mining, Christian Kargl-Simard, said.
“The IC gives our stakeholders additional certainty for development and was a key conditions precedent to be able to draw our US$235.5M in project financing facilities. With the IC completed, we continue to work with Government Ministries and expect to announce additional permit approvals and El Domo related contracts with the Government of Ecuador over the next months.”
Fredy Salazar, President and CEO of Salazar, said they were thankful for Government of Ecuador’s confidence in Adventus Mining, Salazar and El Domo.
“This is another step closer to my dream of placing El Domo into production for the greater good of the Ecuadorian people, and of course our communities and employees.”
For further information please visit: https://salazarresources.com/