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Belo Sun Mining Corp. ("Belo Sun" or the "Company") (TSX: BSX,OTC:BSXGF; OTCQB:BSXGF) announces that the Federal Court of Altamira, Pará, Brazil, denied the Company's request for recognition of provisional compliance with a prior judgment of the Federal Court of Appeals. That appellate judgment conditioned the effectiveness of the Construction License (Licença de Instalação LI) for the Volta Grande Gold Project on (i) completion of the Indigenous Component Study based on primary data, and (ii) the conduct of prior, free, and informed consultation with the affected Indigenous communities.
As a result of the decision, the Construction License remains legally valid but suspended.
In its ruling, the Federal Court held that, at this stage, sufficient compliance with the applicable conditions had not yet been demonstrated, citing recent technical opinions issued by Brazil's National Indigenous Peoples Foundation (FUNAI) and a report from the Federal Public Prosecutor's Office.
The Company reaffirms its commitment to full compliance with all applicable environmental, social, and regulatory requirements, as well as to maintaining transparent and timely communications with the market. Belo Sun will, in due course, evaluate and pursue all appropriate legal remedies.
Clovis Torres, Chief Executive Officer of Belo Sun added: "Belo Sun believes that the Court's interpretation differs from the requirements originally established by the relevant authorities, with which the Company considers itself to be fully compliant. The Company had anticipated this outcome as one of several possible scenarios and does not consider it to affect the underlying merits of the project or the strength of our permitting framework. Rather, it represents another procedural step for the Company to work through.
Belo Sun continues to work closely with its legal advisers, regulators, and stakeholders to respond constructively to the issues raised and to advance the project in a responsible manner. Subject to final legal advice, the Company intends to appeal this decision to the Federal Regional Court, which has previously confirmed in related proceedings that Belo Sun meets the applicable requirements for lifting the license suspension. The Company remains confident in the validity of its licenses, the consistency of prior court decisions, and its ability to advance and deliver a world-class gold project for the benefit of all stakeholders."
Further updates regarding this matter will be disclosed as required under applicable laws and regulations.
About the Company
The Volta Grande Gold Project is located in Para State in Brazil. Belo Sun Mining Corp. is a mineral exploration and development company with gold-focused properties in Brazil. Belo Sun's primary focus is advancing and expanding its 100% %-owned Volta Grande Gold Project. Belo Sun trades on the TSX under the symbol "BSX" and on the OTCQB under the symbol "BSXGF". For more information about Belo Sun please visit www.belosun.com.
For further information, please contact:
Belo Sun Mining Corp.
(416) 309-2137
Caution regarding forward-looking information:
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding the ruling from the Federal Court of Altamira; plans to appeal and the merits of the case; the status of Company's existing permits; and the timeline and plans to bring the Volta Grande Project into production and future plans of the Company. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including risks inherent in the mining industry and risks described in the public disclosure of the Company which is available under the profile of the Company on SEDAR at www.sedar.com and on the Company's website at www.belosun.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
