Shares of Mawson Resources (TSE:MAW) jumped 31 percent on Tuesday after the Northern Finland Administrative Court has rejected all claims made by a Finnish NGO in an appeal it made to block its exploration permit granted by the Finnish Mining Authority (TUKES).
In July 2014 the NGO appealed the Finnish mining department’s decision to permit Mawson deeper rig access granted within the Natura 2000 biodiversity areas during winter conditions and hand portable rig access during summer conditions.
The court has reiterated both the earlier exploration permit and the conditions set out by the mining and environmental administration, said Mawson in a statement. But the company’s exploration permit will be legally enforceable until the end of a re-appeal window of time, which closes on June 22, 2015.
"With this decision, the Court has unequivocally endorsed the permit granted to Mawson by the mining authority, which was fully supported by all environmental authorities, to allow deeper drilling at the highly prospective Palokas gold project. The local population continues to show overwhelming support for the project. We believe the NGO should now respect the wishes of the local people and allow Mawson to continue its work, in an environmentally sound way, without further delay. Continued co-operation between all stakeholders will lead to the best outcome for the environment, and importantly, the best outcome for the Ylitornio and Lapland community," said Mawson’s President and CEO, Michael Hudson.
Over the last year, four administrative bodies representing the mining and environmental authorities and the Court found that Mawson's exploration work, in accordance with the permit, has not caused any significant risks to the environment, fauna and flora or to any people living in the Palokas area, said the company in a statement.
Neighboring village associations and the local municipality support Mawson’s project, wanting to see it progress such that it might also serve as a potential future employment base for declining population areas in the Lapland region. Despite support from all levels of the community and the courts, Mawson has suggested that the NGO may file an appeal to the Supreme Administrative Court.
Should the NGO continue to pursue legal avenues, however, it may find the process more challenging because, as Mawson points out, the recently elected Finnish Government's New Governmental Coalition Program, has made it clear that it wants to limit instances where third parties can delay the permitting process. The proposed Program can play a number of ‘cards’ by limiting access to the Supreme Administrative Court in environmental and construction matters and raise fees for appeals to deter parties lacking a strong legal case.
Finnish Law grants a final level appeal to the Supreme Administrative Court. Nevertheless, the ruling has also ratified Mawson’s plans to drill at the Palokas gold discovery, starting on August 1, with the Company's Winkie hand portable drill rig. The program which has already produced results including 19.6m @ 7.5 g/t gold from 18.1 metres, is not subject to re-appeal.
After gaining legal force, Mawson plans to undertake a substantial winter deep diamond drilling program at the Palokas prospect. Mawson’s exploration permit will be valid for a period of 3 years, the maximum time allowable under the Mining Act, while the company can apply to extend this period can be made in 3-year intervals, up to a maximum of 15 years.
Mawson, which has endured a slow permitting process since its first major discovery in Finland more than three years ago, has emphasized in the past that it has worked with all authorities to minimize the impacts of its planned drilling, including the capture of all drill cuttings, reduction in total machine weight and the placement of walkways to reduce foot traffic while creating an inventory and monitoring program for all vegetation.