Greystar (GSL.to) gets its appeal

take a wild guess as to when the trouble started

Now here's a thing. Greystar Resources' (GSL.to) appeal to keep its December 2009 environmental impact assessment (EIA) as filed and not have to resubmit an EIA as asked to last month has been successful. Here's the NR:

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 31, 2010) - Greystar Resources Ltd. (the "Company") (TSX:GSL - News; AIM:GSL) is pleased to announce that further to its news releases dated April 29 and May 21, 2010 the Company has received a positive decision in regard to the Company's appeal with the Ministry of the Environment, Housing and Territorial Development (MAVDT) to reinstate its December 22, 2009 Environmental Impact Assessment (EIA).

On May 28, 2010, the Company received a decision from MAVDT that reverses its April 20 letter and reinstates the December 22, 2009 EIA as filed. MAVDT will move forward with a review of the EIA.

Steve Kesler, President & CEO commented, "We are very pleased with the Ministry's decision to reinstate our EIA as filed. We are committed to the highest standards of environmental stewardship in the development of the Angostura project. We believe that Angostura can be developed in a sustainable fashion that respects the integrity of the environment while delivering economic benefits to all stakeholders. We will continue to work closely with the Colombian Government and MAVDT to resolve all concerns related to the development of Angostura."

Greystar is in the midst of completing a Definitive Feasibility Study (DFS) on the Angostura project that is expected to be published in the second half of 2010. In addition, the Company has begun the process of securing US$650 million in project finance from international sources. The Company continues to carry out exploration at the project with a total of six drill rigs focused on three targets; Angostura high grade, Mongora and La Plata.

It seems the main thrust of the appeal, that the law enacted in Feb 2010 couldn't be applied retroactively, was a winning argument. All this and a Santos likely win makes for a good day for the GSL guys. The stock will jump on this news for sure, but it still leaves the question of whether the EIA as submitted will actually get approval. Thorny one, that.