Concessions will be available for application by any party on the first business day of November 2020.
Plateau Energy Metals Inc. (“Plateau” or the “Company”) (TSX-V: PLU | OTCQB: PLUUF) reports today that nine (9) of 15 of the concessions currently under administrative and judicial procedures have been listed by the Institute of Geology Mining and Metallurgy (“INGEMMET”) in El Peruano (the Peruvian legislation publication) as areas to be withdrawn from the mining register. Accordingly, they will be available for application by any party on the first business day of November 2020, unless the Company’s subsidiary, Macusani Yellowcake S.A.C. (“Macusani”) receives the “Medida Cautelar” (injunction) on the 15 concessions from the administrative court. The list was issued online today. Inclusion on this list does not invalidate Macusani’s claim to the title unless the Medida Cautelar is not issued before the first business day of November 2020, and none of the concessions containing uranium are included in the list for availability.
The Medida Cautelar and judicial process in the administrative courts have been delayed due to the coronavirus pandemic which has contributed to a backlog within the courts of filings from the parties on this, and other cases, the presiding judges are responsible for. The Medida Cautelar would suspend any further attempt that INGEMMET makes to remove the title of these concessions from Macusani and restores the rights, validity, and ownership to Macusani until the end of the judicial proceedings. Although the Company is pursuing the Medida Cautelar vigorously, there is no certainty the Company will be successful. If the Company is unsuccessful, there will be a material adverse impact to the Company.
In the event that the Medida Cautelar is issued after the first business day of November 2020, the Company has been advised that its issuance will suspend any new application process for the concessions and will have the same effect of restoring the rights, validity and ownership to Macusani for the duration of the legal process.
“Our main focus is on the advancement of these two strong strategic mineral projects with robust economics and exploration potential. This bureaucratic process to date, has not held back the developments we’ve undertaken to move these projects forward, and that will continue to be the case while we vigorously defend this in the background.” stated Alex Holmes, CEO. “The Company has been working with support at the highest level of the Peruvian state and continues to pursue administrative and legal routes to ensure title to the concessions is preserved.”
In court filings, INGEMMET has admitted that the Company paid the validity fee for the concessions for 2017, and they continue to collect and accept the annual validity payments made for the concessions. The validity payments for 2019 are shown in the online data base as paid and accepted on June 26, 2020, and as previously reported, the payments for 2018 were made and accepted on May 5, 2019.
The Company has filed notices with INGEMMET for inclusion in the dossiers of the nine concessions highlighting that there is an ongoing judicial case and an active administrative procedure and any interested party will not be able to obtain clean title on the area of any of the nine concessions. Any interested third party could become a party to the ongoing judicial process which will be an impediment for any other party, besides Plateau or its affiliates, in developing these concessions.
In the ordinary course of business, the Company has ongoing dialogue with the Canadian government and is evaluating its own recourse via the Peru-Canada Free-Trade Agreement (FTA) and Foreign Investment Promotion and Protection Agreement (FIPA) which are designed to protect foreign investment from direct or indirect actions of state enterprises which are inconsistent with their obligations under these agreements.