The Conversation (0)
Aug. 03, 2012 07:59AM PST
South American Silver Corp. (TSX:SAC) reports its plan of action after receiving official notice of a Nationalization Decree of its Malku Khota silver-indium project in Bolivia.
As quoted in the press release:
“We will continue to pursue all channels available to us,” said Greg Johnson, President and CEO of South American Silver Corp. “This action plan includes the prospect of negotiating a resolution of the situation with the Bolivian government, or, if required, the pursuit of compensation for the full value of the project through international arbitration.”
During the months preceding the government’s announced intent to nationalize the Malku Khota project, the Company and the vast majority of indigenous communities in the project area had received numerous assurances, including a signed accord with the Minister of Mines, which stated that the concessions were confirmed to be valid and that the Company should continue its exploration activities.
Accordingly, the Company is very disappointed with the government’s announcements, but has been quick to respond and to take action. Over the past month, management has been pursuing all possible diplomatic options in addition to reaching out to the Bolivian government at all levels. In particular, the Company thanks the Canadian government for its strong support by raising this matter as a priority on a number of diplomatic fronts.
South American Silver President and CEO Greg Johnson said:
“The period ahead will be one of transition for the Company as we adjust our business strategy to advancing our Chilean copper-gold project, realizing value from our Bolivian investments, and focusing on opportunities that create long-term shareholder value.”
Click here to read the South American Silver (TSX:SAC) press release
Click here to see the South American Silver (TSX:SAC) profile.