Reinstatement Of Installation License For Volta Grande Gold Project

TORONTO – Belo Sun Mining Corp. reported that the Federal Regional Court has accepted the appeal to reinstate the Installation License, which was suspended in 2017 for the Company’s Volta Grande Gold Project located in Pará State, Brazil. As previously disclosed, the Federal Court of Altamira had recently maintained the suspension of the Installation License, in force since 2017. The Company adopted appropriate legal measures to challenge that decision.
Desembargador Federal Flávio Jardim of TRF-1’s 6th Panel granted interim relief, suspending the lower court decision and fully restoring the effectiveness of the Installation License. The ruling authorizes Belo Sun to resume and continue regular installation activities for the Project.
In his ruling, the Court found that the Company had fully complied with the conditions previously imposed by TRF-1, including that: (i) the Indigenous Component Study (ECI) had been prepared based on primary data, as required; (ii) prior, free and informed consultation had been conducted in accordance with the Juruna Protocol, with adequate information, internal deliberation and culturally appropriate participation; and (iii) the Juruna (Yudjá) and Arara of the Volta Grande do Xingu communities had participated in all stages of the consultation process, with formal statements of support. The Court found the consultation had been carried out in good faith, in a participatory and transparent manner, consistent with International Labour Organization Convention No. 169.
The Court further held that FUNAI’s subsequent reversal of its earlier position, which had confirmed the sufficiency of the ECI and the regularity of the consultation process, was not supported by any formal administrative procedure as required under applicable regulations. The ruling determined that any new requirements by FUNAI, including any request to expand the scope of the consultation, must be preceded by a formal administrative process with proper technical justification.
As a result of the ruling, the Installation License is now fully effective and the Company is authorized to proceed with construction and installation activities for the Project.
The respondents to the appeal have been given the opportunity to file a response, and the interlocutory appeal will proceed to review by the 6th Panel of TRF-1. The Company will provide further updates as appropriate.
Clovis Torres, Chairman and Chief Executive Officer, said, “We welcome this major milestone, which is all the more meaningful given that the project’s suspension in 2017 marked a challenging period for our team and shareholders. Today, we would like to congratulate everyone whose determination and professionalism have made this new phase possible.
We also wish to express our sincere gratitude for the steadfast support we have received over the years from the local communities and Federal, State and Municipal authorities. Their trust and engagement have been essential throughout this journey.
This project will be developed in accordance with best international mining practices to protect the environment, while also applying the highest social standards. Our ambition is clear: to contribute sustainably to the economic development of the region by creating tangible opportunities for local residents and generating long-term positive results.”