- Belo Sun Mining Corp (TSX:BSX) has provided an update on it’s Volta Grande mine, which has had its construction license suspended
- The project was mothballed in 2017 by the Brazilian Government, and Belo was ordered to complete an Indigenous Study
- That study is now complete, however COVID-19 shutdowns have meant the government department it is submitted to may be delayed in assessing it
- Belo Sun is currently looking at financial options to develop the site, assuming it has its construction license reinstated
- Belo Sun (BSX) is up 1 per cent at C$0.60 per share with a market cap of $259 million
Belo Sun Mining Corp (TSX:BSX) has submitted to the Indigenous Affairs Agency of Brazil (FUNAI) its Indigenous Study for the Volta Grande mine.
If and when it is completed, Volta Grande is estimated to becoming the largest gold mine in Brazil.
Construction at the site has been suspended did since 2017, when the company was ordered to prepare the aforementioned Indigenous Study. Now that the study has been completed, the company is looking for financial partners to restart construction at the site.
However, there are more hurdles to overcome for the troubled project.
As the Brazilian government and many of it’s departments are shutdown due to COVID-19 lockdowns, Belo Sun expects that the wait time for receiving approval for this study may be pushed back.
A normal turnaround would be 90 days for the review of the study and to seek any clarifications needed, along with 30 additional days to complete the review following any company response to clarification.
The company has also re-examined the feasibility study of the Volta Grande mine, and believes it is still within 5 per cent variance of the original study.
As the company has largely been corporate-based since the suspension of its license by the Brazilian Government, its workforce has not been affected much by coronavirus.
The company’s Brazil and Canada teams have been working from home since the pandemic began.
The company has stated it is following all related public health protocols, and that it currently does not have an employee in Canada or Brazil who has tested positive for the disease.
Belo Sun has also closed a number of outstanding share loans and promissory notes, both to and from senior officers in the company.
The loans were made to senior officers in 2018 to protect the company’s share price after a large corporate shareholder sold out. The supporting directors have repaid in full the loans with interest, with the exception of CEO, Peter Tagliamonte, who has extended the maturity of his loan.
Belo Sun Mining (BSX) is up 1 per cent to C$0.60 per share with at 10:30am EDT.