Australia-based SolGold has announced an agreement with the government of Ecuador on the exploitation agreement terms and conditions for the Cascabel copper-gold project in Ecuador.
In this regard, the exploration company, through its 100% subsidiary Exploraciones Novomining, has completed the contractual negotiations and agreed upon a term sheet in preparation for the execution of the exploitation agreement for the copper-gold project.
Under the terms of the contract, SolGold has secured the right to develop the Cascabel project and produce copper, gold, and silver from the contract area for 33 years with an option for renewal.
The company has also agreed with the government to an advance royalty payment totalling $75m.
SolGold said the exploitation agreement together with existing legislations and regulations, determines the legal and financial terms and conditions needed for the development of the Cascabel project.
The Ecuadorian government has approved the term sheet and it is said to be an important step forward for the copper-gold project.
Located in Imbabura province in northern Ecuador, the Cascabel copper-gold project is expected to produce the first ore in mid-2029.
SolGold commenced the exploration operations at the Cascabel project in July 2011 which led to the discovery of the Alpala and Tandayama America deposits on the Cascabel concession.
The company has been in discussions with the government of Ecuador since the beginning of this year to negotiate the terms and conditions of the exploitation agreement for the Cascabel project.
SolGold CEO and SolGold Ecuador president Scott Caldwell said: “The completion of the negotiations and execution of the Term Sheet of the Exploitation Agreement for the Cascabel Project stands as a significant milestone, reflecting our shared commitment to all stakeholders.
“SolGold extends our sincere gratitude to the Government of Ecuador, regional administrations and local communities for their invaluable collaboration and support, each of whom has been instrumental in this momentous achievement.”
