LONDON (ShareCast) - (Sharecast News) - Metals Exploration announced the successful conclusion of negotiations with a group of artisanal miners occupying land at its La India gold project in Nicaragua on Friday, clearing the way for further development of the site acquired earlier this year.
The AIM-traded gold producer said the artisanal miners, operating under a local co-operative structure known as the Cooperativa, had vacated the relevant portion of land in July as agreed.

It said the group previously held legal rights to a small area within the La India project, and had been encroaching into the proposed open-pit mine zone.

"The company is pleased to confirm that the Cooperativa has been in full compliance of the agreement, by vacating the relevant land during July," Metals Exploration said.

"All mining areas within the proposed La India main open-pit are now free of artisanal miners."

Talks were continuing with other artisanal groups still operating in the wider area.

The company said it was working with the Nicaraguan government on a solution to enable both small- and large-scale mining to co-exist within a single tenement.

It said the plan included creating designated zones for artisanal miners and dismantling environmentally damaging processing operations in line with international standards.

"We are pleased to have reached a fair and constructive agreement with the Cooperativa and appreciate their full compliance with the agreed terms," said Darren Bowden, CEO of Metals Exploration.

"Our continued collaboration with the Nicaraguan government and local communities is aimed at establishing a sustainable framework where both artisanal and large-scale mining can operate side-by-side, delivering long-term benefits to all stakeholders while upholding the highest environmental and social standards."

Metals Exploration acquired the La India project in January.

At 1159 BST, shares in Metals Exploration were down 0.58% at 13.82p.

Reporting by Josh White for Sharecast.com.

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