Midnight Sun Mining Corp (TSX-V:MMA, OTCQB:MDNGF) said Thursday that the Zambian Ministry of Mines and Minerals Development has posted a decision indicating that the renewal application for Large Scale Exploration Licence 21509-HQ-LEL, which hosts the Kazhiba Dome, has been rejected.
The decision does not impact the company’s other two licences that comprise the Solwezi project, or the ongoing Cooperative Exploration Plan with First Quantum Minerals (TSX:FM), aside from the timing of drilling and target focus, the company said in a statement.
The Zambian Ministry’s decision was published on the Ministry's website, but no notice with reasons was provided to Midnight Sun, the company said.
"While we are disappointed in the current situation, we do believe it will be rectified, and we are taking all possible steps to expedite a swift resolution so that we can resume our exploration at Kazhiba,” CEO Al Fabbro said in a statement.
“In the meantime, we will launch our plans to work on Mitu, continuing with our Cooperative Exploration Plan with First Quantum to define potential oxide copper feed sources for Kansanshi.”
Partner KoBold Metals has been “working diligently” at the Dumbwa target compiling all available geological data and refining their work plan,” Fabbro added.
“We are excited for KoBold to begin systematic exploration of this large-scale target."
Midnight Sun has retained Zambian legal counsel to “vigorously defend” its right to the licence, it added.