A cheap Euro means better margins for miners. It accrues to the advantage of nascent companies such as Edgewater Exploration (EDW.V or EDWZF) who is developing their Corcoesto Gold Project in Galicia, Spain. They recently announced the addition of an experienced mining engineer and finance advisor as they rapidly advance this project into a bankable feasibility study.
The major miners are looking for economically viable mines capable of profitable development that are moving into the developmental stage. The big companies are flush with cash and are eager to buy projects at wholesale prices.
The Spanish Government is eager to entertain such deals as it will provide employment for hundreds of workers who are currently unemployed. Spain has one of the highest unemployment rates on the continent and these kind of liaisons could provide jobs and growth to a nation that urgently needs both.
Recently Edgewater made a significant announcement initiating the mine permitting process and has now transformed themselves from one of the many junior exploration companies into one of the few moving into mine development and construction. Moreover, the company has applied for “strategic project” status, which means that the permitting process could be fast tracked in order to benefit the local community.
Today Edgewater has engaged Tetra Tech to complete a feasibility study by the end of 2012. CEO George Salamis states in the news release, “2012 is set to be a milestone year for Edgewater as we advance the Corcoesto project to the feasibility stage and further de-risk the project for the benefit of our shareholders. We are very pleased to award the Feasibility Study mandate to an experienced European represented firm such as Tetra Tech. At Corcoesto a significant infill drill program is on-going which has produced positive results thus far including: 1.9g/t gold over 38m and 1.6g/t gold over 41m. In addition, we have recently submitted the environmental impact assessment to the Galician government authorities, and have initiated capital financing discussions with several banks and financial institutions, in parallel with the feasibility process. We believe by early 2013 we will have a construction ready project and aim to have the majority of our project financing in place at this time with the assistance of our Project Finance Advisor Mr. AJ Ali. Subject to the outcome of the Bankable Feasibility Study, we remain firmly committed to seeing Corcoesto come to fruition as Galicia’s newest gold mine and ensure that the communities surrounding Corcoesto derive maximum benefit from a future operation.”
To read the full press release click here…
In the interview below with George Salamis, CEO of Edgewater, we discuss how they are moving right ahead in acquiring the financial and mining engineering muscle and know-how that is so vital to the growth and development of an emerging gold producer.
Disclosure: Long Edgewater