Business
Volcanic provides update regarding its Guinean operating subsidiary, Guiord SA
VANCOUVER, British Columbia, Feb. 05, 2018 (GLOBE NEWSWIRE) -- Volcanic Gold Mines Inc. (“Volcanic”) (TSXV:VG) announces that due to intransigence on the part o
About this update from Volcanic Gold Mines Inc.
[{"type":"text","content":"VANCOUVER, British Columbia, Feb. 05, 2018 (GLOBE NEWSWIRE) -- Volcanic Gold Mines Inc. (“Volcanic”) (TSXV:VG) announces that due to intransigence on the part of the Administrateur Général of its Guinean operating subsidiary, Guiord SA (“Guiord”), Volcanic is not presently able to gain access to its Mandiana project in Guinea and has therefore postponed drilling activities at the project. The work program, originally to commence during the month of January, was to include drilling of a linear zone of artisanal workings 6.3km in length and up to 550m in width at Tadibakourou, at which coarse gold has been recovered from numerous shallow pits and shafts, as reported on July 26, 2017. Local regulations require that the Administrateur Général of Guiord (“Administrateur”) take certain routine administrative actions in order for the intended site activities to occur. While the necessary arrangements are straightforward and rapid to implement, the execution thereof has been stalled by the Administrateur in an apparent attempt to force upon Volcanic a non-arm’s length service contract totally unacceptable to the Company. Volcanic is taking decisive steps to resolve this matter, including a corporate restructuring of Guiord which will permit Volcanic’s management to directly conduct the activities of Guiord and commence the planned drilling program on the Mandiana project. Volcanic holds an indirect 75% interest in the issued capital of Guiord, a company incorporated under the laws of the Republic of Guinea. The remaining 25% of Guiord’s issued capital is indirectly held by SOGUIPAMI, the Société Guinéenne du Patrimoine Minier, a state entity formed for the promotion of the mining and exploration interests in Guinea. Volcanic hereby takes the opportunity to recognize the positive support of SOGUIPAMI, and the Government and People of Guinea in the conduct of its business. About Volcanic Volcanic brings together a deeply experienced and successful mining, exploration and capital markets team focused on building multi-million ounce gold resources in the underexplored West African country of Guinea, and its neighbouring countries. Through the strategic acquisition of mineral properties with demonstrated potential for hosting gold resources, and by undertaking effective exploration and drill pr...