RNS

RNS Number : 2427R
Ortac Resources Limited
07 December 2016
 

Ortac Resources Ltd / Epic: OTC / Market: AIM / Sector: Mining & Exploration

 

07 December 2016

ORTAC RESOURCES LTD 

("ORTAC" OR THE "COMPANY")

Update - Slovakia

 

Ortac Resources Ltd, the AIM listed exploration and mine development company, provides an update on an amendment to the size of the Kremnica Mining License Area ("KMLA") in Slovakia and the conclusion to a judicial proceeding brought against the Central Mining Bureau ("CMB") in the Regional Court in Banská Bystrica for an underground mining permit issued to the Company.

The amendment of the KMLA is as a result of productive discussions between the Company, the Regional Mining Bureau ("RMB") in Banská Bystrica and the town of Kremnica to amend the boundary of the KMLA so that the town of Kremnica is no longer located within the KMLA.

The Regional Court in Banská Bystrica has ruled against the CMB in relation to an underground mining permit issued to the Company in 2014 and revoked the decision to issue the mining permit.

Vassilios Carellas, Ortac's CEO, commented: "The amendment of the KMLA is as a result of concerns raised within the Kremnica community during the engagement process that mining would eventually end up in the town. With Kremnica town no longer located within the boundary of the KMLA, this sensitive issue is now resolved.

This judicial decision against the CMB does not impact current activities, as no mining is at present taking place."

Background

                Kremnica Mining License Area

The KMLA was designated in the Decision of the Ministry of Economy in Prague, no. MKHD-D.P.12 dated 21 January 1961. Following a process that commenced in 2012, a revised boundary for the KMLA was agreed to by the Planning Permission and Building Regulation Office in Kremnica, the Company and the RMB.

As a result of this amendment to the boundary of the KMLA, the town of Kremnica is no longer located within the KMLA and the area of the KMLA has been reduced from 11.80 km2 to 9.47km2 This has no bearing on the current resource at Šturec, which is located over one kilometre to the west of the town and it is on this side where all the known prospective gold targets are located.

                Provincial Court Proceeding

In a court proceeding on the legality of the CMB's Decision regarding the issuance of an underground mining permit ("Decision") issued to the Company in 2014, the Regional Court in Banská Bystrica has decided against the CMB and revoked the Decision.

In a lengthy judgement, the court did not object to issuance of an underground mining permit itself but rather criticised insufficient reasoning given by the CMB in justifying the grant of an underground mining permit.

The Company was not a participant in the case and Ortac await the response from the CMB. This decision by the Regional Court can be appealed to the Supreme Court of Slovakia.

**ENDS**

 



 

For further information, please contact:

 


Ortac Resources Ltd

 


Vassilios Carellas (CEO)

 +44 (0) 20 7389 9050


SP Angel (Nominated Adviser & Broker)
Ewan Leggat/Lindsay Mair

 +44 (0) 20 3470 0470


Joint Brokers

 

 


Beaufort Securities

Jon Belliss / Elliot Hance

 

+44 (0)20 7382 8300


Peterhouse Corporate Finance Limited

Guy Miller

Lucy Williams

+44 (0) 20 7469 0930

www.pcorpfin.com


 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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