Published: March 16, 2016 |

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The Colombian Constitutional Court has published its ruling, which deems certain provisions to the National Development Plan (Law 1753) issued in July 2015, in respect of exemptions to mining operations in areas of Colombia considered to be páramos (high altitude eco-systems) to be unconstitutional. Prior to the court’s new ruling, mining titles issued before 2010, such Galway Gold Inc.‘s Reina de Oro, were allowed to continue to mine. As a result of the court’s new unfavorable ruling, mining in all páramo eco systems throughout the country has been declared to be damaging to the páramos and to the water supply. As such, all mining and petroleum operations in the páramos will be ordered to stop. Moreover, according to the new ruling, the company will not be able to transfer title of the Reina de Oro project and the mining permit will no longer be valid.

The main consideration of the court appears to be the protection of the páramos, which provides approximately 70 percent of the country’s water supply. According to industry sources, there are 36 páramos in Colombia and at least 350 titles in páramo areas. The court appears to be suggesting that mining affects the quantity and quality of water the area produces. The court has also declared that public interests supersede private interests, which eliminates the ability of the company to sue the Colombian government for damages.

Due to the ruling of the court, mining activities in Vetas’ Reina de Oro area are expected to be stopped. Galway Gold will study the legal effects of the court´s ruling on the option agreement, the pending arbitration award in favor of the company, and the subsequent embargo of the title that is currently in effect. Management will proceed based on the advice of local Colombian counsel as well as Canadian counsel in order to move forward in an informed manner.

As at September 30, 2015, Galway Gold had a cash balance of US$10,143,759 and no debt. The company is thus extremely well positioned to focus its attention on investigating other corporate opportunities. During the past year the company has reviewed many potential M&A opportunities and looks forward to finding an opportunity to create further shareholder value.

To stop by Galway Gold’s website, CLICK HERE

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