Thursday, August 25, 2011

Coro Mining ( The San Jorge project rejected by Mendoza's parliament

It was all set to be delayed (if that makes sense) until after the election on October 23rd, but yesterday the parliament of Mendoza made a somewhat surprising decision and decided to debate and vote on whether the San Jorge copper project owned by Coro Mining ( would be given its permission to operate.

The result: The San Jorge mine has been rejected by the parliament of Mendoza. It's not going to be a good day for holders of shares, folks

UPDATE: This post went up at 07:58am, some 32 minutes before the bell. Ten minutes later the stock was halted. Just sayin'

UPDATE 2: Gawd, it took 'em long enough. Here's the NR, just released with less than 90 minutes' playtime left before the close:
Press Release Source: Coro Mining Corp. On Thursday August 25, 2011, 2:38 pm
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 25, 2011) - Coro Mining Corp. ("Coro" or the "Company") (TSX:COP - News) regrets to announce that the Provincial Legislature of Mendoza has voted against the ratification of the Company's approved Environmental Impact Declaration ("EID"), notwithstanding that the EID was conditional, inter alia, upon the Company's Argentinean subsidiary, Minera San Jorge ("MSJ"), complying with the highest standards of environmental protection, control and monitoring prior to, and during the construction and operation of the project. Over the past 3 years, Coro has strictly complied with all laws and regulations, including the 7722 law which required the ratification of the approved EID, and has made every effort to ensure that the legislators were fully informed about the project. In addition, a Mendoza court recently determined that the process which led to the approval of the EID was neither illegitimate nor arbitrary, and therefore fully complied with provincial law.
As recently as August 24th, the head of the Lower House confirmed that the ratification vote would take place after the elections scheduled for October, in order that the decision could be taken based on the merits of the project and not on a calculation of electoral advantage. Unfortunately, the vote took place in any event, without consideration of the conclusions of the legislature's commissions who have spent the last several months evaluating the EID, and more pertinently, the validity of the process which led to its approval. The decision to not ratify the EID was taken against the clearly expressed wishes of the current government, with whom the Company was in advanced discussions aimed at delivering a carried 10% interest in MSJ to the province.
Coro will now consider its alternatives to seek legal redress and compensation through the Argentinean and international courts. In particular, the 7722 law is currently subject to legal challenges of its constitutionality by Coro and several other parties. We anticipate that this lawsuit may be resolved by mid 2012 and in the event that the courts find that the law is indeed unconstitutional, the denial of legislative ratification of the Company's valid and approved EID, may be deemed to be null and void.
Finally, we wish to express our gratitude to the people of Uspallata who had supported the development of San Jorge. We sincerely regret the rejection our project by your elected representatives, especially given the rigorous review and consultation process that has taken place over the past 3 years. Coro had hoped to work with you in raising your living standards and demonstrating the economic and social benefits that San Jorge could have brought to your community; unfortunately, this opportunity has now been denied to us.
Alan Stephens, President and CEO

You want an Ottotrans™ on that? Ok, here goes:

"We're screwed"