Mawson Resources Ltd. (TSE:MAW) shares rose on Wednesday after the company’s permission to drill Kairamaat 2 and 3 in Finland was upheld by the highest court in the country.
The Finnish supreme administrative court comprehensively rejected an appeal by the Finnish Nature Conservation Association (an NGO), which now allows Mawson the right to actively explore the permits which cover the Rajapalot and Palokas prospects in Northern Finland. The decision is non-appealable and the exploration permits gain immediate legal force.
The court rejected an appeal by the NGO against the exploration permit decision that entitles Mawson to drill up to 123 deep diamond drill holes within Natura 2000 biodiversity areas during winter conditions and hand-portable-rig access during summer conditions.
This is the first time the company has gained full drill access to test the gold mineralised system across the Rajapalot area.
Mawson now plans to undertake a substantial winter deep diamond drilling programme of 10,000 metres, amongst other work programmes, at the Palokas prospect and broader Rajapalot project area.
On June 26, 2014, the Finnish mining authority, TUKES, granted Mawson a modified and renewed exploration permit (Kairamaat 2 and 3) that covers a surface area of 1,462 hectares at Mawson's Rajapalot and Palokas gold project in Northern Finland.
In late July, 2014, TUKES's decision was appealed by the NGO to the Northern Finland administrative court through a standard public appeal process. On May 21, 2015, the administrative court rejected all aspects of the appeal. On June 18, 2015, the NGO appealed the regional administrative court's decision to the supreme administrative court and on Sept. 20, the supreme administrative court upheld the lower court decision.
Over the last year, four administrative bodies representing the mining and environmental authorities and both the regional and supreme administrative courts have found that Mawson's exploration work, carried out as permitted, does not present any significant risks to nature, environment, animals, other livelihoods or people in the Rajapalot area or its vicinity.
The exploration permits are valid for a period of three years, the maximum time allowable under the Finnish Mining Act. The company has been working under an enforcement order granted in October, 2014, and an application to extend the permits can be made in three-year intervals, up to a maximum of 15 years. The next renewal date is in October 2017.
"The supreme administrative court has unequivocally endorsed the permit granted to Mawson by the mining authority in July, 2014, which was fully supported by all environmental authorities, to allow deeper drilling at the highly prospective Rajapalot gold project,” said Michael Hudson, the company's president and chief executive officer.
“Among other rights, the decision allows the company to deep drill up to 123 diamond drill holes in Natura 2000 biodiversity areas amongst other work programs, and is the key milestone we have been essentially awaiting since the first permits were applied for in October 2009. We understand the responsibility granted to us by this decision and look forward to working with the mining and environmental authorities to ensure our work is conducted according to global best practice methods."
Mawson shares were 1.6% higher at C$0.32 on Wednesday.