Belo Sun’s Volta Grande Gold Project License Temporarily Suspended

Belo Sun Mining (TSX:BSX,OTCQB:BSXGF) is in the midst of another legal challenge at its Volta Grande gold project in Brazil, where the Supreme Court has temporarily suspended the installation license pending approval of a settlement agreement.

In a Wednesday (October 21) news release, the company said the Supreme Federal Court partially granted a request by the country's Federal Public Prosecutor’s Office (MPF) to overturn a February ruling that reinstated the project’s license.

The suspension will remain in effect until the Federal Regional Court of the 1st Region (TRF-1) approves an agreement – which has already been submitted to the court – between Belo Sun and Brazil’s National Foundation of Indigenous Peoples (FUNAI).

"The STF’s recognition of the relevance of the settlement hearing established by the TRF-1 is welcomed,” Belo Sun CEO Clovis Torres said.

“We are advanced in our discussions with FUNAI with the settlement agreement submitted to TRF-1 and are confident that the parties will reach an agreement in the best interests of all stakeholders.”

The project’s installation license had been suspended since 2017. In February 2026, a TRF-1 ruling reinstated the license, finding that Belo Sun had met judicial requirements concerning its Indigenous Component Study and consultation process. The State of Pará reissued the license in April, extending its validity until April 2029.

In September, the MPF asked the Supreme Court to suspend the license reinstatement, a request opposed by both Belo Sun and Pará state.

A separate lawsuit challenging the project’s Indigenous Component Study was permanently dismissed in July after the claimant did not appeal. Another legal action filed that month sought further consultation with the Mebêngôkre-Xikrin people and additional measures related to environmental licensing.

Despite the ongoing legal hurdles, Belo Sun has continued advancing technical work at Volta Grande. In May, the company engaged G Mining Services to assess the work required for an updated definitive feasibility study, which it targeted to wrap up early next year.

The company has also reported progress on project planning, recruitment and training programs to prepare local workers for an estimated 1,700 construction jobs.

In the October 21 news release, Belo Sun confirmed it will now refrain from carrying out physical work at the project site but “remains committed to the ongoing conciliation process and will continue its discussions with FUNAI and the Indigenous communities.”

Belo Sun added that both parties are already meeting their obligations under the agreement, despite awaiting court approval.

Shares of Belo Sun fell from C$1.16 (October 20) to C$0.94 on Thursday, October 22. As of 9:30 a.m. EST shares were trading for C$0.98.

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Securities Disclosure: I, Aastha Sethi, hold no direct investment interest in any company mentioned in this article.