In a press release dated today (February 1, 2013) Canadian penny-stock mining company, Emgold Mining Corporation, uses language more explicitly suggestive of closing-up shop in Grass Valley than any they have used before. They suggest they may drop the Idaho-Maryland Mine project altogether to focus their resources on “other assets the Company has in its portfolio.”
Further to the Company’s October 26, 2011 and September 7, 2012 press releases, permitting activities associated with the Idaho-Maryland Project (the “Project”) remain on hold pending the resurgence of the junior mining equity markets. Emgold reiterates what it stated in its past press releases that, despite the current price of gold, financing for projects in the junior mining sector is extremely difficult. In the event that insufficient funds can be raised to move the Project forward, Emgold will continue to delay the Project until market conditions improve or, as a worst case, drop it to focus on the other assets the Company currently has in its portfolio.
The current extension of the Lease and Option to Purchase Agreement (the “BET Agreement”) expires today. The BET Agreement, signed in 2002, originally had a five year term. It has been extended three times to date, in two year increments, with the last extension taking effect on February 1, 2011. Emgold is currently in negotiations with the BET Trust to extend the agreement, which covers the lease and option to purchase of approximately 2,750 acres of mineral rights and 91 acres of surface rights associated with the Project. If negotiations to extend the BET Agreement are unsuccessful, Emgold will terminate the Project and focus on the other assets the Company currently has in its portfolio.
The City of Grass Valley cancelled Emgold’s IMM Project application after it failed to meet a city-imposed deadline of September 10, 2012 for submitting the necessary funds to the City of Grass Valley for independent consultants to begin preparation of a revised Draft Environmental Impact Report (DEIR) on the proposed mine and ceramics factory.
For more information, see CLAIM-GV.org.