Specifics on permitting:
PERMITTING, ENVIRONMENTAL AND SURFACE RIGHTS
4.4.1 Permitting and Surface Rights
The Bonanza property lies on land belonging to the indigenous community of Saycota, in the
Municipality of Acaponeta, Nayarit. Although internal rules in these types of indigenous communities
may vary based on specific consuetudinary rights (customary laws or traditional rights), decisions
related to usage of the land by external individuals or companies on land controlled by each community
are usually decided through a public assembly of community members. The assembly is the primary
community representative, and any agreement/contract is required to be approved by them. A
representative of the National Agrarian Registry (Mexican governmental entity) regularly participates in such assemblies as a moderator and a witness to the agreements reached.
The representatives of Asia Metals, through their current contractor on site, has been in close contact
with the members of the community and on June 27, 2021, signed an informal agreement with the
representatives of the community. This agreement granted access permits to Asia Metals and its
representatives to conduct the exploration work necessary to prove the potential viability of the
Project. As part of the agreement Asia Metals and its representatives agreed to make some
improvements to the roads in order to minimize access problems during the rainy season.
The agreement of June, 2021, is currently under review, as the Saycota community decided in October,
2021, to suspend the permit to execute the drilling work already started by Asia Metals, arguing that
Asia Metals was not in compliance with some verbal commitments. On March 8, 2022, the
representative of Asia Broadband was invited via a letter from the president of the commissariat of
communal property, to participate in a general assembly where members of the community will re-
evaluate extending the previously granted permits. The letter thanks Asia Broadband representatives
for the diverse support received so far that has benefited the community. At the time of this report,
there has been no update related to the status of the permitting.
4.4.2 Environmental
Exploration work which includes drilling and trenching requires the presentation and approval of a
Preventive Report, in accordance with the Mexican environmental authorities. However, Asia
Broadband has decided to apply for an Environmental Impact Statement (EIA), which is usually
required by the Mexican environmental authorities for more advanced stages of a project but may also include exploration work. The EIA was filed at the office of the Secretariat of Environment and Natural Resources on April 6, 2021. At the time of this report, the review of the EIA is still in progress.
