Condor Gold plc today said that the United States’ sanctions imposed on the Nicaraguan General Directorate of Mines were unlikely to have any impact on the company’s current operations at La India.
SANCTIONS
On 24 October, the US Treasury Department extended its existing sanctions “to hold the Ortega-Murillo regime accountable for its continued attacks on Nicaraguans’ freedom of expression and assembly”.
“Furthermore, the new E.O. [executive order] gives Treasury the authority to target certain persons that operate or have operated in the gold sector of the Nicaraguan economy.”
LA INDIA
In response to the move, Condor said in a statement that it had held discussions with its advisors relating to the executive order and an internal review of its current and future planned operations.
The company’s La India project is almost construction ready and materially de-risked.
Condor Gold has filed its feasibility study technical report, purchased the surface rights and a new SAG Mill, and received permission to construct and operate a mine.
“Condor owns 100% of the 587 sq km La India project and fully permitted mine,” added the company.
“It has no commercial arrangements with the Government of Nicaragua or artisanal miners.
“Condor is fully compliant with the laws of Nicaragua and will continue to comply with all relevant laws and regulations, as well as international standards and best practices.
“Condor’s aim has been to showcase to the highest western standards how to conduct gold exploration and complete all technical studies to a bankable feasibility study level and obtain the key permits.
“Condor is compliant with the IFC [International Finance Corporation] performance standards for an exploration and development company pre-construction.”
SUPPORT
The company said that a comprehensive stakeholder engagement plan had been the key to success at the local level with local communities having voted “overwhelmingly for a new mine at La India”.
Condor added: “Whilst the company is yet to fully understand the impact the sanctions may have on the company’s future operations in Nicaragua, the board’s initial view is that this is unlikely to directly impact operations noting that the sanctions appear targeted at state-owned enterprises.”