Cangold Terminates Ixhuatan Gold-Silver Option Agreement With Brigus Gold

Cangold Limited (TSXV:CLD) announced the termination of its option agreement with Brigus Gold on the Ixhuatan Gold-Silver Project in Chiapas, Mexico.
As quoted in the press release:

The Company was given a prepared statement on Friday, September 7 by the Ejido San Isidro Las Banderas (“San Isidro”), a local farming community, indicating that the community members had voted unanimously to ban any and all future mining-related activity on lands controlled by the ejido. As this ejido is the largest and most influential in the Ixhuatan Project area and controls the surface rights to the Campamento Deposit, Cangold management has terminated the option agreement.

Robert Archer, Cangold’s President & CEO, commented:

This is a surprising and highly disappointing turn of events, particularly given the months of social due diligence which we have conducted. While we still maintain that Ixhuatan is an excellent project, the local community has made it clear that there will be no further mining-related activity in that area. Under these circumstances, Cangold management has decided that there is no point in continuing with the option.

Click here to read the full press release.