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INV Metals to advance Loma Larga as court throws out mining referendum petition

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INV Metals to advance Loma Larga as court throws out mining referendum petition

INV Metals Inc. will commence financing and permitting efforts for its Loma Larga gold-copper-silver property in Ecuador, after the country's Constitutional Court rejected an application for a referendum to ban mining in the Azuay province and the Camilo Ponce Enriquez canton.

Shares in the company were up by as much as 12% on Sept. 18.

In March, INV Metals was forced to relocate the processing and tailings facilities as a referendum in the province's Girón Canton subdivision resulted in a vote against mining in the region. The Loma Larga deposit itself is located outside of Giron.

In the latest ruling, the court said that it "will carry out a formal and material control, case by case, regarding the origin of popular consultations on metal mining, analyzing whether these violate rights or imply reforms to the Constitution, and if they meet the requirements of loyalty, clarity and transparency required by law to guarantee the rights of voters."

In June, the same court dismissed a petition to hold a similar referendum that would have impacted SolGold PLC and Cornerstone Capital Resources Inc.'s Cascabel copper-gold joint venture.

A November 2018 feasibility study for Loma Larga pegged an after-tax net present value of US$356 million, at a 5% discount rate, a 24.7% internal rate of return and a 2.6-year payback period.