VANCOUVER, BRITISH COLUMBIA--(Marketwire -07/11/12)- South American Silver Corp. (SAC.TO)(SOHAF) today expressed extreme disappointment in statements made this evening by the Bolivian government that it intends to nationalize the company's development stage Malku Khota silver-indium-gallium project.
South American Silver has not received any formal notice from the Bolivian Government about the cancellation of its concession and is actively seeking clarification about the government's intentions.
"We strongly object to the government's stated course of actions and we will pursue all legal, constitutional and diplomatic options," said Greg Johnson, President and CEO of South American Silver.
This action is surprising in light of the fact the company continues to receive the support from the 43 out of 46 indigenous communities in the project area. South American Silver has worked closely with these local indigenous communities over the past several years providing significant direct employment on project related jobs, as well as jointly developing programs with the communities to facilitate job training, education, agricultural enhancement and water management for long-term sustainable development.
Since 2007 the company has invested well over $16 million in the discovery and exploration of the Malku Khota site. South American Silver's proprietary leach technology, developed over the past 4 years on the project, is key to development of the Malku Khota project to its fullest potential. Ongoing exploration and any future mine development would result in up to 1,000 jobs for local workers in the community.
Mining is a key industry in Bolivia and this proposed action by the state sends a strongly negative message to potential investors and developers about the security of title for their investment in the developing country.
The company continues development work at it's the Escalones Copper-Gold project in Chile and remains financially sound with over $38 million in cash reported as of the end of the first quarter.
About South American Silver Corp.
South American Silver Corp. is a growth focused mineral exploration company creating value through the exploration and development of the Malku Khota (100%) project in Bolivia, and the large scale Escalones (100%) copper-gold project in Chile. The Company's approach to business combines the team's track record of discovery and advancement of large projects, key operational and process expertise, and a focus on community relations and sustainable development. Management has extensive experience in the global exploration and mining industry with much of that focused in Bolivia, Chile, Peru and Argentina. The Company's shares are listed on the Toronto Stock Exchange under the symbol "SAC" and on the US OTC market as "SOHAF". Additional information related to South American Silver Corp. is available at www.soamsilver.com and on SEDAR at www.sedar.com.
This release contains forward-looking statements which look into the future and to the effect of certain events on the business. Forward-looking statements may include words such as "will", "shall", "seek" and "intends" and similar expressions. These forward-looking statements are based on current expectations, factors and assumptions and involve known and unknown risks, uncertainties and other factors.
It is important to note that: Readers are cautioned not to place undue reliance on these statements as the actual events may differ materially from any future events expressed or implied by such forward-looking statements if known or unknown risks, uncertainties or other factors affect the Company's business, or if the Company's assumptions prove inaccurate. Therefore, the Company cannot provide any assurance that forward-looking statements will materialize. Although the Company has attempted to identify important factors that could cause actual events to differ materially from those contained in forward looking statements, there may be other factors that cause events to be materially different from those planned or expected. Factors that could cause events to differ materially from current expectations expressed or implied by the forward-looking statements, include, but are not limited to, changes in the attitudes of the Bolivian government and among local indigenous communities; changes in the political and economic climate in Bolivia; changes in the regulatory environment in Bolivia; and other risks of the mining industry. The assumptions made in developing the forward-looking statements include: continuing support for the Company by the local indigenous communities that have signed comprehensive agreements and passed resolutions supporting the project. Subject to applicable laws, the Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason.
Unless otherwise indicated, forward-looking statements in this release describe the Company's expectations as of July 10, 2012.
- Bolivian government
- sustainable development