HONG KONG, July 13, 2015 /CNW/ - St. Augustine Gold and Copper Limited (TSX: SAU)
("St. Augustine" or the "Company") is pleased to announce that
its joint venture partner, Nationwide Development Corporation
("NADECOR") and the Mansaka Indigenous Cultural
Communities/Indigenous Peoples ("ICC/IPs" or "Mansaka Tribe"), and
the National Commission on Indigenous Peoples ("NCIP") collectively
entered into a Memorandum of Agreement ("MOA") for the support and
development of the King-king Copper-Gold Project (the
"Project"). The signing of the MOA represents another
significant milestone in the Company's efforts to secure permitting
and support for the development of the Project.
The MOA, together with the Free and Prior Informed Consent
("FPIC") report of the NCIP Regional Office, has been forwarded to
the NCIP Central Office in Manila. The NCIP Commissioners
will review the MOA and, upon determination that the documents
submitted are complete and in order, the NCIP Commission will issue
the Certificate of Precondition ("CP"). The CP refers to a
certification issued by the NCIP that the required FPIC was
properly obtained from the ICC/IP community concerned and is in
accordance with the provisions of the national guidelines. A
decision on the CP is expected before year end 2015.
The NADECOR - Mansaka Tribe MOA is a cornerstone agreement that
complies with the Philippine Indigenous Peoples Rights Act of 1997
with NCIP as the primary governmental agency mandated to formulate
and implement policies and guidelines to promote and protect the
rights and well-being of the ICC/IPs, as well as the recognition of
their ancestral domain and rights.
During the past five years, NADECOR (together with affiliates of
the St. Augustine group as the service provider) and the Mansaka
Tribe have worked to align all interests in the development of the
Project such that the operation will mutually benefit all
parties. This MOA further paves the way for near-term
development of the Project and represents an important milestone
that leads toward start of project construction.
The MOA is valid for 25 years and provides a framework for how
the Project will benefit the Mansaka Tribe through payment of a 1%
royalty fee, as well as employment and various social development
programs. More information on the salient points of the MOA
is provided in an appendix to this announcement.
NADECOR President Conrado T.
Calalang stated, "This MOA demonstrates the Project's
commitment to the Mansaka Tribe, the durable social license to
operate, and further clears the way for King-king to begin
development."
SAU President and CEO Paolo A.
Villar further added, "With the Project nearly fully
permitted and with the FPIC and CP imminent, it will be ready for
financing and start of construction. I look forward to the
economic uplift and growth of the Mansaka Tribe upon the
commencement of the Project."
The King-king Copper-Gold Project
The King-king Copper-Gold Project is located in Compostela
Valley in the Philippines, and is
expected to recover 3.16B lbs. of copper and 5.43M oz. of gold over
its 25 year mine and process life. According to the Preliminary
Feasibility Study that was released on September 18, 2013, and then filed on
www.sedar.com on November 1, 2013,
the Project has a pre-tax NPV of $2.0
billion with an IRR of 24.8%. The estimated mineral reserves
amount to 617.9 million tonnes at 0.300% total copper and 0.395 g/t
gold.
About St. Augustine
St. Augustine (SAU.T) is a TSX-listed mining company focused on
the development of the King-king Copper-Gold Project. The Project
is one of the largest undeveloped copper-gold deposits in the
world, and is listed as a top three-priority mining project by the
Philippine government.
NATIONAL INSTRUMENT 43-101 COMPLIANCE
Mr. James J. Moore, P.E., Vice President Technical of St.
Augustine and a qualified person under National Instrument 43-101
("NI 43-101") has reviewed and approved the scientific, technical
and economic information contained in this news release.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This announcement includes certain "forward-looking
statements" within the meaning of Canadian securities
legislation. All statements, other than statements of
historical fact included herein are forward-looking statements.
Forward-looking statements involve various risks and uncertainties
and are based on certain factors and assumptions. There can be no
assurance that such statements will prove to be accurate, and
actual results and future events could differ materially from those
anticipated in such statements. Important factors that could
cause actual results to differ materially from the Company's
expectations include uncertainties related to fluctuations in gold,
copper and other commodity prices and currency exchange rates;
uncertainties relating to interpretation of drill results and the
geology, continuity and grade of mineral deposits; uncertainties
relating to the completion of a bankable feasibility study;
uncertainty of estimates of capital and operating costs, recovery
rates production estimates and estimated economic return; the need
for cooperation of the Company's joint venture partner and
government agencies in the development of the Company's mineral
projects; the need to obtain further permits and additional
financing to develop the Company's mineral projects; the
possibility of delay in development programs or in construction
projects and uncertainty of meeting anticipated program milestones
for the Company's mineral projects; and other risks and
uncertainties disclosed under the heading "Risk Factors" in the
Annual Information Form dated March 19,
2015, and filed with Canadian securities regulatory
authorities on the SEDAR website at
www.sedar.com.
APPENDIX:
The salient points of the MOA provides for:
- A 1% Royalty Fee to the Mansaka Tribe based on the gross net
smelter revenue from the project upon the start of commercial
operations;
- Priority employment of the Mansaka Tribe as per agreed
guidelines;
- Educational assistance through scholarship programs as per
guidelines;
- Facilitation and arrangement for the conduct of TESDA training
for required technical skill sets;
- Priority to and assistance to the Mansaka Tribe in their
anticipated business ventures during construction and
production;
- Primacy to the Mansaka Tribe within the company Social
Development Management Program;
- Financial and technical assistance to the Tribal Council in
support of Community Royalty Development Projects;
- Medical outreach programs;
- Assistance to the Mansaka Tribe to preserve the School of
Living Tradition for the preservation of customs and practices of
the Mansaka Tribe;
- Commitment to render Mansaka Tribe assistance in the event of
calamities and disasters;
- Support the Mansaka and IPs women programs;
- Resettlement areas and mechanisms for adversely affected
communities within the Project area; and
- Implementation of programs for the protection and preservation
of the environment and ecology.
The MOA also provides for the fair and equitable treatment of
those tribal members resettled, fair compensation, and the
establishment of project and MOA monitoring, as well as the
provision of grievance boards to address any ongoing
concerns.
Upon closure and reclamation, guidelines and bonding are
established to necessitate rehabilitation of mined-out areas,
decommission mining related structures and hand over facilities
that are consistent with the aspiration of the Mansaka Tribe's for
a long lasting socio-economic benefit.
SOURCE St. Augustine Gold and Copper Limited