Belo Sun Secures Judicial Victory for Volta Grande Project

Belo Sun Mining (TSX:BSX,OTCQB:BSXGF) announced it has received the final dismissal of a longstanding civil lawsuit that had posed a significant legal hurdle for its Volta Grande gold project in Brazil's Amazon region.

Brazil's Federal Regional Court of the 1st Region (TRF1) permanently dismissed Civil Public Action No. 0000242-26.2017.4.01.3903, which was filed by the Federal Public Defender's Office (DPU) in 2017.

The court unanimously dismissed the case without ruling on its merits, finding that the DPU's action duplicated an earlier lawsuit involving the same claims and requested remedies.

The TRF1 court unanimously ruled to dismiss the case without a decision on the merits, citing that the Federal Public Defenders Office (DPU’s) action duplicated an earlier lawsuit covering the exact same claims and remedies.

The DPU failed to appeal the decision before the statutory deadline, rendering the dismissal final and binding.

“This final court ruling is a major milestone for Belo Sun and a clear validation of our legal position,” CEO Clovis Torres stated in the announcement. “Other repetitive lawsuits will certainly have the same fate. It reinforces our confidence in Brazil's judicial framework as we remain focused on advancing the Project responsibly, while maintaining open communication with local stakeholders, and delivering long-term value for our shareholders.”

Located in Pará state along the Xingu River, the Volta Grande project is projected to be the largest open-pit gold extraction site in Brazil.

Belo Sun aims to extract 3.52 million ounces of gold over a 17-year mine life, excavating more than 600 million tons of material.

The project’s proximity to the Belo Monte hydroelectric dam, located less than 50 kilometers away, has fueled intense scrutiny from environmental groups, indigenous communities, and federal prosecutors.

Opponents have repeatedly challenged the project's environmental impact assessments, citing cumulative risks to the Xingu River basin’s hydrology and biodiversity.

Earlier this year, the TRF1 court reinstated the project's Installation License, a decision that prompted immediate backlash from local groups.

The Korina Juruna Indigenous Association of Pakissamba Village subsequently filed a formal complaint accusing the company of attempting to bypass formal consultation protocols.

The company has consistently denied the allegations, maintaining it operates under the supervision of the national Indigenous agency, FUNAI.

With the DPU’s civil action now permanently dismissed, Belo Sun is pushing forward with project development. The company recently announced it had retained an external mining consultancy to update technical studies for the Installation License, with the goal of finalizing a phased project plan and updated feasibility study by the third quarter of 2026.

Shares of Belo Sun spike 15 percent following the news, rising from C$1.01 to C$1.16 by late Monday. Tuesday (July 280 morning shares were holding in the C$1.08 range.

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