🕐09.12.14 - 13:54 Uhr
FIRESTONE VENTURES -- GUATEMALAN CONGRESS PROPOSES NEW ROYALTY REGIME
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Re: News Releases - Monday, December 08, 2014
Firestone Ventures -- Guatemalan Congress Proposes New Royalty
Regime
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Toronto, Ontario -- December 8, 2014 -- Firestone Ventures Inc.
announces that on 28 November 2014, the Guatemalan Congress agreed to
increase mining royalties prescribed in national mining legislation.
Only the signature of President Otto Perez Molina is now required to
effect changes.
As far as we can ascertain, this legislation proceeded
without any consultation or discussion with the mining industry.
If royalties are increased, all metals production (except for nickel)
will be subject to two royalties totaling ten percent (9% for the
national government and 1% for the producing project municipality).
Currently, the law imposes a royalty of one percent for zinc
production; however, zinc producers voluntarily pay 3% by agreement
with both the mining industry association and the Ministry of Mines and
Energy.
"It is unfortunate that the Guatemala Congress is moving
forward with such drastic increases.
This will have serious impact to
existing and any new foreign investment in Guatemala resource projects"
says Dr.
Keith Barron, Chairman of Firestone Ventures Inc.
"The
resulting impact for base metal projects such as Firestones zinc
projects, that typically have smaller margins due to the nature of the
deposit may be severe and may require a complete reconsideration of our
business plan".
This proposed change to mining royalties is one of a package of changes
to laws that affect many industrial sectors and all changes are
intended to help balance the 2015 national budget.
Firestone Ventures
Inc.
officers are presently in Guatemala to meet with officials in
order to discuss the impact of Congress recent actions, with both the
Guatemalan government and mining industry players.
For further information please contact:
Dr.
Keith Barron F.
Carson Noel
Chairman President and CEO
Tel: 416 367-3200 Tel: 416 367-3200
E:
E:
Forward-Looking Statements
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
This News Release includes certain "forward-looking statements".
These
statements are based on information currently available to the Company
and the Company provides no assurance that actual results will meet
managements expectations.
Forward-looking statements include estimates
and statements that describe the Companys future plans, objectives or
goals, including words to the effect that the Company or management
expects a stated condition or result to occur.
Forward-looking
statements may be identified by such terms as "believes",
"anticipates", "expects", "estimates", "may", "could", "would", "will",
or "plan".
Since forward-looking statements are based on assumptions
and address future events and conditions, by their very nature they
involve inherent risks and uncertainties.
Actual results relating to,
among other things, results of exploration, project development,
reclamation and capital costs of the Companys mineral properties, and
the Companys financial condition and prospects, could differ
materially from those currently anticipated in such statements for many
reasons such as: changes in general economic conditions and conditions
in the financial markets; changes in demand and prices for minerals;
litigation, legislative, environmental and other judicial, regulatory,
political and competitive developments, including legislative changes
in royalties instituted by the Republic of Guatemala and applicable
municipalities; technological and operational difficulties encountered
in connection with the activities of the Company; and other matters
discussed in this news release.
This list is not exhaustive of the
factors that may affect any of the Companys forward-looking
statements.
These and other factors should be considered carefully and
readers should not place undue reliance on the Companys forward
looking statements.
The Company does not undertake to update any
forward-looking statement that may be made from time to time by the
Company or on its behalf, except in accordance with applicable
securities laws.
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