Honduran Congress to Approve New Mining Law
NEW YORK, Feb. 8, 2012 /PRNewswire/ — Mustang Alliances Inc (OTCBB: MSTG) (“Mustang”) is pleased to provide a status update on the Honduran mining law.
The Committees of the National Congress of Honduras have finished writing a report on the new Mining Law and have submitted a draft of the Mining Law to the Congress for approval.
During the process of preparing the document, the committee that worked on it met with environmental groups, the mining sector and the authorities of the Directorate for the Promotion of Mining (DEFOMIN).
In a bid to streamline procedures and attract more investment to its mining sector, the details of the new law include an acceleration of the licensing process and simplification of rules for mining companies planning to operate in Honduras.
Aldo Santos, Director of DEFOMIN, was quoted in the Honduran Press (http://www.elheraldo.hn/Secciones-Principales/Pais/Mineria-genero-L.-5-000-millones-a-Honduras) as being confident that the new law will be passed in the first two months of 2012 and indicated that, despite the lack of legislation, mining activity in the country generated $288 million in exports in 2010.
Honduras-Chile Mining Agreement
In further reported developments, Chile and Honduras have signed a mining cooperation agreement under which the former will provide technical assistance for the development of the latter’s mining industry. The agreement was signed in Honduras by Rigoberto Cuellar, the Minister of the Natural Resources and Environment (Serna) and Pablo Wagner, Chile’s Deputy Minister of Mines. (http://www.laprensa.hn/Secciones-Principales/Honduras/Tegucigalpa/Firman-convenio-de-cooperacion-con-Chile)
Deputy Minister Wagner referred to the issue of a technical cooperation saying, “We have been asked by the Presidency and the Minister of Natural Resources and Environment to support them in the legislative field, consequently our technical teams will be able to share experiences. Although research shows that Honduras has metal deposits such as gold, silver, copper, lead, iron, zinc, and deposits of antimony, marble and precious stones, unfortunately, this mining potential has not been exploited.”
In Latin America, Chile is the country with the second-largest level of mining investment, second only to Brazil. Investment in Chilean mining during the last decade exceeded US$50 billion. The foreign investment in Chilean mining projects exceeded US$2 billion in 2008 alone. Chile has a bright future due to the fact that for the period 2010 to 2017 capital investments of amounts of up to US$48 billion are therein committed, of which US$15 billion will be invested by the state owned mining company ‘Codelco’ (the world’s largest copper producer) and US$33 billion by the private sector.
Mining is the fundamental support of Chilean economy and it is the country’s most productive sector. Mining exports represented an incredible 62 per cent of the total Chilean exports between 2007 and 2010, reaching an average that exceeded US$40 billion per year in this period.
“We are very encouraged by the submission of the mining law to Congress for ratification together with the confident statements of DEFOMIN Director Santos and the signing of the agreement with Chile,” stated Mustang President Robert Faber. “This indicates that the government of Honduras is serious about encouraging private sector investment in the mining sector. The passing of the Mining Law will stimulate investment and provide a framework for the big mining companies to return to Honduras.”
ABOUT MUSTANG ALLIANCES INC
Mustang (OTCBB:MSTG) is a junior mining company with a focus on the acquisition and development of precious metals properties in Honduras. Mustang has 5 concessions totaling 4,400-hectares under agreement in the Choluteca District of Honduras. Concessions are on trend to several world class gold mines in the Central American gold belt, such as the El Limon mine, Nicaragua, that has produced over 3 Million Ounces of gold to date. The Mustang Concessions are in an area that has been actively worked by artisanal miners for the past 200 years.
Certain statements in this announcement including statements such as “believes,” “anticipates,” “expects” and all similar statements regarding future expectations, objectives, intentions and plans for mineral exploration, development and production may be regarded as “forward-looking statements” within the meaning of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made. Management’s current view and plans, however, are subject to numerous known and unknown risks, uncertainties and other factors that may cause the actual results, performance, timing or achievements of Mustang Alliances to be materially different from any results, performance, timing or achievements expressed or implied by such forward-looking statements. The various uncertainties, variables, and other risks include those discussed in detail in the Company’s SEC filings, including the Annual Report on Form 10-KSB, for the year ended December 31, 2010 and its Quarterly Report on Form 10-Q for the period ended September 30, 2011. Mustang Alliances Inc undertakes no duty to update or revise any forward-looking statements. Actual results may vary materially.
SOURCE Mustang Alliances Inc