Inca Pacific Provides Magistral Update
01 Octobre 2010 - 2:00PM
Marketwired
Inca Pacific Resources Inc. (TSX VENTURE: IPR) ("Inca Pacific" or
the "Company") is pleased to provide an update on the Company's
ongoing dispute with regards to the Magistral Project.
Arbitration Process
Minera Ancash Cobre S.A. ("MACSA"), the Company's wholly-owned
subsidiary in Peru, initiated the Magistral arbitration proceedings
in response to the unjustifiable seizure by Activos Mineros S.A.C.
("Activos Mineros") of a US$3 million bond in October 2009 and the
follow-on termination in December 2009 of the Mining Concession
Transfer Agreement ("Transfer Agreement") between Activos Mineros
and MACSA. The Transfer Agreement governed the privatization terms
for five of the twenty-six concessions controlled by MACSA. The
five concessions host the Magistral copper/molybdenum deposit.
MACSA filed the arbitration demand on March 18, 2010 with the
Arbitration Regulations of the National Institute of Mining and
Petroleum Law ("Arbitration Institute"). The arbitration panel was
finally formed on September 23, 2010 and is comprised of one
arbitrator appointed by MACSA, one by Activos Mineros, and a third
arbitrator appointed by the Arbitration Institute. MACSA has until
October 22, 2010 to submit its claim to the arbitration panel.
Activos Mineros will then have 20 working days to respond to the
claim with the possibility of extending that period for an
additional 10 working days. It is difficult at this time to
estimate how long before a decision will be rendered by the
arbitration panel.
The Company is seeking monetary damages of US$195 million. The
amount of damages reflect the US$3 million performance bond seized,
the Company's investment in Magistral to date of approximately
US$40 million, and the loss of the project which has a net present
value based on the Company's Feasibility Study of US$152 million.
The Feasibility Study, its economic model and the related financial
projections were approved unconditionally by Activos Mineros in
2008.
MACSA has and continues to maintain a dialogue with the Peruvian
Government, including representatives of Activos Mineros and the
Agency for the Promotion of Private Investment ("ProInversion), in
an attempt to find a commercial resolution to the dispute. If a
commercial agreement is reached the arbitration process may be
stopped with no consequences to either party at any time.
ESIA Update
The Peruvian Ministry of Mines and Energy ("MEM") officially
approved Magistral's Environmental and Social Impact Assessment
("ESIA") on June 29, 2009. Subsequent to this approval, the Mining
Council, a quasi-independent branch of the MEM, heard an appeal on
the "officially approved" ESIA by the community of Conchucos,
agreed with the appeal, and revoked the Magistral ESIA.
The appeal by the community of Conchucos was based on a
technical issue related to the proposed location of the tailings
dam. The Mining Council did not revoke the ESIA on technical
grounds; instead the Mining Council revoked the ESIA on
environmental concerns unrelated to the appeal. The arguments used
in the decision by the Mining Council was the precautionary
principle set forth in the Peruvian Law on the Environment, applied
on account of alleged potential environmental damages that could be
caused to a natural water reservoir (a small wetland area at the
mine/tailing impoundment site) as a result of the construction of
the proposed processing plant and auxiliary facilities. This
argument has never been used with respect to mining projects in
Peru before and has no basis in Peruvian Environmental Law.
MACSA has challenged this decision by filing a claim in the
Peruvian Courts stating that the Mining Council's reasoning for
revoking the ESIA applied the precautionary principle in an undue
manner; contains incongruent reasoning as it goes beyond the
foundations set out in the appeal for review and insufficient
reasoning when it does not base its assertions on technical reports
or opinions; damages the principle of legal certainty when it
demands from us to comply with requirements that do not correspond
to the approval procedure of the ESIA; and affects the principle of
material truth, as it did not even attempt to obtain new evidence
to sustain its assertions. MACSA is waiting for a judicial
pronouncement which is expected in the following months.
Exploration & Community Program
Prior exploration efforts within the Company's concessions
focused principally on the main deposit of Magistral with limited
exploration having been done on the Company's surrounding claims.
There remains significant potential throughout the Company's
concessions for the following deposit types: Cu-Mo-Au skarn
porphyries, Au-Ag porphyries, structurally controlled sandstone
hosted Au-Ag systems, replacement type polymetallic systems in
limestones, and intrusive-related tungsten vein deposits associated
to precious and base metal deposits.
The Company has decided to initiate a field program on its
100%-owned Magistral claims not under dispute to evaluate several
of the occurrences previously identified. This program will include
the acquisition of some existing airborne geophysics, soil and rock
geochemistry, and mapping. The program will take approximately
three months to complete.
Prior to the start of the field work, the Company will initiate
a new community relations program. Since the cancelation of the
Transfer Agreement and the subsequent initiation of the arbitration
proceedings, the Company has actively tried to maintain a positive
relationship with the community of Conchucos as well as surrounding
communities. During the time of our work to keep positive
relationships with the local communities, ProInversion has and
continues to criticize MACSA and provide misinformation concerning
MACSA's past and present activities.
We are of the opinion that the actions of ProInversion have the
potential to divide the community which will ultimately impact the
development of the Magistral. The Company and MACSA have worked
diligently to promote a positive relationship with community of
Conchucos and look forward to working with them as we proceed with
our exploration efforts.
INCA PACIFIC RESOURCES INC.
Michael D. Winn, CEO & Director
Forward-Looking Statement - Some of the statements in this news
release contain forward-looking information that involves inherent
risk and uncertainty affecting the business of Inca Pacific
Resources Inc. Actual results may differ materially from those
currently anticipated in such statements.
Neither the TSX Venture Exchange nor the Investment Industry
Regulatory Organization of Canada accepts responsibility for the
adequacy or accuracy of this release.
Contacts: Inca Pacific Resources Inc. Julia Maxwell 604 687-3727
Jmaxwell@incapacific.com
Inca Pacific Resources (TSXV:IPR)
Graphique Historique de l'Action
De Juin 2024 à Juil 2024
Inca Pacific Resources (TSXV:IPR)
Graphique Historique de l'Action
De Juil 2023 à Juil 2024