Orea receives positive court opinion on Montagne d’Or
Toronto-listed Orea Mining’s share price gained 4.5% on Wednesday, after the company said it had received a positive opinion by a reporting judge announcing that the French government's deemed nonrenewal of the Montagne d'Or mining concession is not valid.
A final ruling is expected by the Administrative Court of Cayenne, French Guiana, on December 24.
"Although the announcement is preliminary, court decisions generally tend to follow the opinion of the reporting judge," said Orea CEO Rock Lefrancois.
The Montagne d'Or joint venture (JV), owned 44.99% by Orea and 55.01% by Nord Gold, submitted renewal applications for a 25-year period for two core mining concessions in December 2016. In February and March 2019, the JV filed proceedings in the Administrative Court of Cayenne to invalidate any implicit (deemed) refusal as a result of the French government having failed to respond within the legal deadline.
The JV also requested that the court order the Minister in charge of mines render a formal decision prolonging the concessions.
In a hearing held at the Administrative Court on December 3, the reporting judge, in charge of providing an independent and nonbinding opinion on the case, recommended the cancellation of the implicit (deemed) refusal to renew the two concessions. The public rapporteur also recommended that the State issue its decision on the renewal applications within six months.
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