Among those I hold is MRB, which is having a less than good day today due to a pr this morning regarding their ownership of the Cerro San Pedro land. I'd love to know what you think of this and what your position on MRB is given this issue. ===============================================================
Hi Mark, I really feel for you..... a real bummer for them and their shareholders. <ng>
Fwiw, I owned it until last week when I somewhat reluctantly took profits on it. I currently have no position nor do I anticipate getting involved again unless some favorable decisions come their way.
I saw that NR by Metallica earlier this morning and quickly mailed it to a couple of buddies who still owned MRB with the suggestion that it would be prudent to sell and move on to greener pastures as I think that it could take next to forever to get this matter resolved in the Mexican court system.
It's really a shame, because I thought they had a lot going for them.....
If asked, I would proffer the same advice to you. It reeks of dead money with a negative bias and since you couldn't possibly have much of a loss in it at this point, why not consider moving your money into something more promising?
Good luck to you with whichever path you choose to travel.
For anyone who might have gotten this far and who might be curious as to what we're talking about......
Metallica Resources' Cerro San Pedro Project Facing Land Use Challenges Wednesday April 14, 9:00 am ET
TORONTO--(BUSINESS WIRE)--April 14, 2004--Metallica Resources Inc. (AMEX:MRB - News; TSX:MR - News) reports that its wholly-owned Mexican subsidiary, Minera San Xavier, S.A. de C.V. (MSX), has received notice that the Agrarian Court residing in the State of San Luis Potosi has found in favor of a contesting group and nullified the Lease Agreement that MSX entered into in 1997 with the Ejido of Cerro San Pedro for the land MSX is using for its heap-leach gold and silver project. Significantly, however, the court did not rule that MSX had to either cease construction of its project or vacate the ground. The court nullified the meeting and the minutes of the meeting in 1997 where the Lease Agreement was approved, as well as nullifying the authority of the ejido representatives who executed the Lease Agreement in that same year. Both MSX and the current possessors of the ground, who are the original ejido members that entered into the 1997 Lease Agreement, are in the process of appealing this decision to a higher-level Federal Court and are seeking a court order freezing the Agrarian Court decision thereby permitting MSX to continue to use the ejido land.
In addition to appealing the Agrarian Court decision, MSX is pursuing several other options in order to establish a long-term legal basis for using the land. MSX is confident that it will prevail in this matter; in part due to Mexican law recognizing mining as a preferred use of the land and also because the project has the support of the people who are recognized as the historical possessors of the disputed land. Additionally, MSX has a good working relationship with federal, state and local authorities. However, MSX can make no assurances that it will succeed in either its appeal or in the other options being pursued. In the event that MSX does not prevail, and the contesting group is granted legal authority to represent the ejido, MSX will be required to negotiate a new lease agreement with the ejido with no assurance that these negotiations will be successful.
The Agrarian Court is a special court within Mexico that administers legal issues related to ejido land title and use. Ejidos are parcels of land that belong to, and are administered by, the historic occupants of the land. Ejidos were created as part of agrarian land reform resulting from the Mexican Revolution in 1910 on the basis that the land should be both owned and possessed by those who actually work on it. MSX has been dealing at all times with the persons who actually have had historic possession to the land being leased, while the contesting group consists of several people who do not reside on the land and obtained legal recognition as ejidatarios through their family lineage.
Metallica Resources is a Canadian precious and base metal exploration and development company focused on the Americas. For further details on Metallica Resources, please visit the Company's website at www.metal-res.com.
Hi ayahuasca, In case you're still interested, an update on Metallica's CSP lease situation.
Metallica Resources Updates Status Of Cerro San Pedro Project, Mexico Wednesday June 2, 9:20 am ET
TORONTO--(BUSINESS WIRE)--June 2, 2004--Metallica Resources Inc. (AMEX:MRB - News; TSX:MR - News) is issuing an update of the status of the Cerro San Pedro heap-leach gold and silver project, located in the State of San Luis Potosi, Mexico. The Cerro San Pedro Project is held by Metallica's wholly-owned Mexican subsidiary, Minera San Xavier, S.A. de C.V. (MSX). ADVERTISEMENT
The Agrarian Court, residing in the State of San Luis Potosi, has issued a temporary stay of execution with respect to the previously announced nullification of the Lease Agreement that MSX entered into in 1997 with the Ejido of Cerro San Pedro for the land MSX is using for the project. This stay of execution has the effect of continuing MSX's legal access to the project pending the ruling of the appeal filed in the Federal Court. The Federal Court has set no date for the hearing of the appeal. Once the appeal has been heard the court will then proceed to issue a ruling. It expected a ruling would occur no later than October, during this time the stay of execution will remain in place. In addition to the legal appeal, MSX has made formal application to the Federal Bureau of Mines for the grant of certain easements and temporary occupation permits that would provide MSX with access to the lands required for the project.
MSX has encountered significant delays in obtaining an explosives operating permit for the project. Although MSX has received, and is in full compliance with, all major environmental permits from the state and federal agencies, the explosives operating permit must be obtained from the Secretariat of National Defense (SEDENA). MSX, and its advisors, believe it has complied with all applicable requirements necessary for obtaining the explosives operating permit. However, SEDENA has requested, among other things, that issuance of the explosives permit is supported in writing by the current President of the Municipality of Cerro San Pedro. The permit application was signed by both the Governor of the State of San Luis Potosi and the then President of the Municipality. Representatives of MSX, with support from the U.S. and Canadian embassies, and the office of the Governor of the State of San Luis Potosi and various federal agencies have been working with SEDENA and local officials to resolve the issues relating to the issuance of the explosives permit. To date the permit has not been issued, and Metallica cannot predict when or if the permit will be issued. If MSX does not receive the explosives operating permit within the next two weeks, it will have no alternatives other than to begin suspending construction activities.
MSX is also required to complete an annual renewal of its construction/operating license issued by the Municipality of Cerro San Pedro by July 2004. MSX currently holds such a license and has had it reissued annually for the past four years. The recently elected President of the Municipality has stated that he believes that MSX is not in compliance with certain conditions in the mining permit and therefore the municipality may not renew the license. In addition, an individual opposing the project, who is also part of the group who sought nullification of the ejido lease agreement, has filed an appeal in the Federal Court in San Luis Potosi. He was granted a temporary injunction restraining the Municipal President from renewing the license and from consenting to the issuance of the explosives permit. MSX is firmly of the view that it is in compliance with all material license requirements, and is entitled to a renewal of its construction/operating license. However, the inability to secure a renewal of this license may also force MSX to suspend construction.
Suspension of construction will result in the termination of approximately 150 employees and contractors who have been recently working on-site. MSX has estimated that at the peak of construction the project would employ approximately 400 people with approximately 200 people employed during the operating life of the mine, which is currently estimated at approximately nine years.
A resident of the city of San Luis Potosi, who obtained status as an ejido member in 2001, has been reported to have filed criminal charges against Richard Hall, Fred Lightner, and other company employees and service providers, stating that the original lease between MSX and the ejido of Cerro San Pedro, executed in 1997, was obtained under fraudulent conditions. Metallica considers these charges to be completely without merit and will vigorously defend the charges.
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