Edgewater Exploration seeks to clarify project status while stock slides
Edgewater Exploration's stock (CVE:EDW) was halved this week while reports swirl regarding the status of its Corcoesto Gold Project.
The stock is currently trading at 8 cents, its 52-week low. The high is 54 cents.
The company is attempting to demonstrate to Spanish government officials that it has the technical expertise and financial ability to fund development of its Corcoesto gold project, but local media reports are stating that the project would not be proceeding with Edgewater because the company could not clear these hurdles.
The company put out a news release pushing back on the reports. It says it is still seeking clarification:
During the meetings held on October 14, 2013 representatives of Minera were informed that Edgewater's failure to present project attributable financing of 30 M Euros would result in various actions by the Ministry, though said actions were unspecified at the time. On October 15th, through communications expressed in the local Galician press, Edgewater's Galician representatives were made aware of the Ministry's desire to cease permitting applications on all fronts related to the future development of the Corcoesto Gold Project. Edgewater's subsidiary, Mineira de Corcoesto, has yet to receive an official notification from the Ministry.
Edgewater is a Canadian based company. It filed a NI 43-101 resource estimate last month showing a measured and indicated resources to over one million ounces at Corcoesto.
Here's the full news release from Edgewater Exploration:
Edgewater Comments on Recent Meeting with the Government in Galicia, Spain
Vancouver, British Columbia: Mr. George Salamis, President and CEO of Edgewater Exploration Ltd. ("Edgewater" or the "Company") would like to report on meetings that were held on October 14, 2013, between the Galician government's Ministry of Industry ("the Ministry") and Edgewater Exploration's wholly owned subsidiary, Minera de Corcoesto ("Minera"). The meetings objectives were to follow-up on discussions held between Minera and the Ministry in July of this year (see press release July 10, 2013) during which the Ministry tabled a new set of criteria for the Company to follow in order to continue being processed for permitting under its Special Strategic Process status. As announced on July 10, 2013, amongst other new obligations set-forth by the Ministry, Edgewater had to be able to demonstrate its technical expertise and financial ability to fund development of the Corcoesto Gold Project notwithstanding the fact that the feasibility process has not yet been completed. The Galicia Government stipulated on July 10, 2013 that Edgewater and its subsidiary were obliged to show funding sources within its various accounts of 30 M Euros, which amounts to approximately 25% of the total capital cost estimated by the company in its previous engineering studies.
During the meetings held on October 14, 2013 representatives of Minera were informed that Edgewater's failure to present project attributable financing of 30 M Euros would result in various actions by the Ministry, though said actions were unspecified at the time. On October 15th, through communications expressed in the local Galician press, Edgewater's Galician representatives were made aware of the Ministry's desire to cease permitting applications on all fronts related to the future development of the Corcoesto Gold Project. Edgewater's subsidiary, Mineira de Corcoesto, has yet to receive an official notification from the Ministry. On December 17, 2012, Edgewater announced the approval of the Environmental Impact Statement (EIS) by the Ministry of Environment, Territory and infrastructure of La Xunta de Galicia, which remains a major milestone.
George Salamis, CEO States, "The government's halting of the project permitting process, occurring while mine financing conditions remain turbulent and before final feasibility has been achieved at Corcoesto, is problematic. However, we remain fully committed to advancing the project until all milestones are achieved. We feel this project will be a significantly positive economic driver, employing hundreds of people directly and indirectly while utilizing environmentally sound and modern technology which will benefit the people of the region for generations to come."
Edgewater remains firmly committed to advancing the Corcoesto Gold Project, through the completion of the feasibility study and review of finance mandates which are underway. On August 06 of this year, the Company publically released an updated Mineral Resource Estimate, which was the result of over 50,000 metres of in-fill drilling (see Edgewater Exploration news release dated August 06, 2013).
To date, the Company has invested in excess of $20 M dollars on the project, which has been a significant employer in the region helping to employ more than 100 people over the last few years. As per the Preliminary Economic Assessment the project has the ability to generate over 270 direct jobs and potentially twice that number from indirect jobs with an initial investment of approximately $150 M capital, (see press release November 17, 2011).
About Edgewater Exploration Ltd.
Edgewater is a mineral development and exploration company focused on advancement and development of precious metal properties. Edgewater has an experienced mine building and operating team with a track record of success. The Company is currently developing the Corcoesto Gold Project in northwest Spain, and exploring the Enchi Gold Project in Ghana, West Africa.
Mr. Gregory Smith, P.Geo., Vice-President of Exploration of the Company, is the Qualified Person as defined by NI 43-101, and is responsible for the accuracy of the technical data and information contained in this news release.
On behalf of the board of EDGEWATER EXPLORATION LTD.
George Salamis, President and CEO
For further information, please contact:
Ryan King, Vice President [email protected]
Telephone: (604) 628-1012"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.