Venezuela's new mining law, 'Ley Orgánica de Minas' has been formally enacted and gazetted.

TSX-V-listed Roland Mineral Enterprises says the new mining law represents a significant step in Venezuela's restructuring of its mining framework, opening the sector to international investment and aligning with a broader rapprochement between Caracas and Washington.

The new mining law opens the mining sector to foreign investment to develop and mine gold and other minerals. It also permits the commercialisation of gold and other minerals both domestically and in foreign markets.

The new law also establishes mining concession terms for up to 30 years, renewable for two additional ten-year periods, while introducing mediation and arbitration mechanisms for dispute resolution with investors.

Further, the law establishes royalty and tax frameworks, including royalties payable in cash or in kind.

Venezuela is prospective for gold, bauxite, iron-ore, nickel, coltan and copper. Major deposits are concentrated in the south-eastern Guiana Shield region.

Reuters reported in April that while Venezuelan mining has backing from the US administration, it  faces big challenges, including armed groups with deep interests in the chaotic, largely illegal prospecting industry that has developed over the past 20 years.

Reuters' sources based in the south-eastern state of Bolivar, including nine mining companies, said they were skeptical international companies will be able to meaningfully invest without major improvements to security in the State, where local criminals operate alongside Colombian rebels and state security forces ‌have been accused of colluding with criminals to prop up illegal gold operations.

Meanwhile, Roland announced on March 27 its Venezuela Mineral Rights Acquisition Programme to identify, pursue and acquire mineral rights in Venezuela.

The company's strategic access agreement with the prior legacy rights holder of the Las Cristinas gold deposit intends to give Roland access to Las Cristinas exploration and development data created by Placer Dome at a reported cost of $171-million, and grants Roland the exclusive use and benefit of the geologists, accountants, legal advisers and others of the former legacy rights holder. 

This provides Roland with direct access to consultants with first-hand knowledge of Las Cristinas and other Venezuelan gold deposits and projects.

The company has granted a total 250 000 stock options to acquire common shares of the company at a price of $0.28 apiece, for a three-year term.