Lumina Gold Corp (TSX-V:LUM, OTCQX:LMGDF) has announced the signing of an Exploration Investment Protection Agreement (EIPA) for its Cangrejos gold-copper project in Ecuador.
The company said the agreement between the Government of Ecuador and Lumina Gold provides a foundation that the parties can build on as the Cangrejos project advances towards development and also paves the way for a future agreement on mining, which would occur after the completion of a Pre-Feasibility Study (PFS).
The EIPA covers an investment commitment by Lumina totaling a minimum of US$36 million for the period 2019-2024 and also covers investments by the company in Ecuador from December 2010 to the end of 2018.
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The agreement also extends to any additional investments made by Lumina during the term and beyond.
Under the terms of the EIPA, the Government of Ecuador pledges to maintain legal certainty and stability for the investment, as well as to provide non-discriminatory treatment compared to other similar projects with regards to the administration, operation, expansion, and transfer of the Lumina Gold's investments.
In addition, the government commits that it will not subject the company and its investments to arbitrary or discriminatory measures. The guarantee also extends to property rights, which bars any confiscation or other termination of rights without fair compensation, and also forbids restrictions on the legal transfer of the investment by the company or its shareholders.
As well, the agreement also contains detailed procedures for dispute resolution, with arbitration in London, pursuant to the rules of the International Chamber of Commerce.
The company noted that it has invested about US$18 million from January 1, 2019 to September 30, 2021 in Ecuador and has just completed financing to continue work on drilling and engineering to complete a PFS by early 2023.
Lumina Gold is a Vancouver-based precious and base metals exploration and development company focused on the Cangrejos gold-copper project in Ecuador.
The company has an experienced management team with a successful track record of advancing and monetizing exploration projects.
Contact Sean at sean@proactiveinvestors.com