12:35דצמבר 03, 2021MT Newswires

Cornertone Capital Reports Ecuador Constitutional Court Rules On Exploration in the Los Cedros Protected Forest in Rio Magdalena Project, Ecuador; Lost 6.7% Thursday

Cornerstone Capital Resources (), which lost 6.7% yesterday, overnight Thursday reported that Ecuador's Constitutional Court has upheld a lower court ruling that invalidated the environmental registration granted by the Ministry of Environment to Ecuador's state mining company ENAMI EP for the initial exploration phase in the "Los Cedros" Protected Forest at the Rio Magdalena project.

Work at the Project was suspended in March 2020, pending a decision in the Constitutional Court of Ecuador on a challenge filed by ENAMI over the exploration permit for the Rio Magdalena concessions, 2/3rds of which are within Los Cedros.

According to Cornerstone, in 2019 the Municipality of Cotacachi in Northwest Ecuadora, brought an action in a local court requesting that the court order ME to revoke ENAMI's environmental registration on the grounds that no prior consultations with local communities had taken place. ENAMI challenged the court decision on the grounds that that court had erred by imposing a requirement for prior environmental consultation, when the regulator currently does not require a such a process during early stage exploration phase (first four years). ENAMI's position was supported by a friend of the court brief filed in the Constitutional Court by the regulators.

Cornerstone will file a petition to the Constitutional Court next week to clarify the effect of the decision. It notes that the decision does not affect the Cascabel project, as Cascabel is not in a protected forest and is already in the advanced (economic evaluation) stage of exploration. It also has an environmental license.