Business
GoldQuest Mining: Corporate Update
VANCOUVER, British Columbia, Oct. 29, 2018 (GLOBE NEWSWIRE) -- GoldQuest Mining Corp. (TSXV:GQC) “GoldQuest” or the “Company”) announces a general corporate upd
About this update from Goldquest Mining Corp.
[{"type":"text","content":" VANCOUVER, British Columbia, Oct. 29, 2018 (GLOBE NEWSWIRE) -- GoldQuest Mining Corp. (TSXV:GQC) “GoldQuest” or the “Company”) announces a general corporate update. The Company continues to wait for the Presidential endorsement of the Exploitation License (the “License”) for its Romero Project (the “Project”) in the Dominican Republic (“DR”). Granting of the License would not allow mining, but would allow GoldQuest to commence the formal Environmental and Social Impact Assessment (“ESIA”) process where environmental and social issues would be addressed. Under DR law, such issues are not part of this License criteria. After delays of over three years, and with no clarity from the DR’s government on any timeframe for receipt of the License, the Company is taking steps towards a cash conservation policy and is proactively seeking opportunities in other countries to deploy its cash and expertise to maximize benefit to shareholders. At the end of Q2 2018, the Company had approximately C$19 million in treasury. “GoldQuest looks forward to deploying its capital and expertise to other jurisdictions,” commented Bill Fisher, GoldQuest’s CEO. “Since its launch in 2002 the Company has almost exclusively focused on the excellent geological potential of the DR, expending over $40 million on exploration activities. The Company believes that it has fulfilled, and exceeded, all of its obligations under DR law. We have also introduced mining majors to the DR. However, without clarity of process under the law, it is problematic to continue to invest.” With regret, the Company has determined to reduce its staff in the DR to a minimum and is suspending community programs. From a maximum of 180 employees, our subsidiary GoldQuest Dominicana has been forced to reduce to a skeleton staff to protect our assets and represent our interests. Canadian cash expenses are also being reduced and certain service contracts are being terminated, including the Investor Relations contract with Red Cloud Klondike Strike. Upon receipt of the License, the Company would have expected to immediately embark on the ESIA and Bankable Feasibility Studies at a pre-production budgeted cost of between $10 and $20 million to the Company. Under DR law, any environmental and social studies can only be formally executed by the Company once it has received formal Terms of Reference...