INV Metals Provides Update

TORONTO, Sept. 02, 2020 (GLOBE NEWSWIRE) -- INV Metals (“INV Metals” or the “Company”) (TSX:INV) provides an update on the Loma Larga gold-silver-copper project (“Loma Larga”), located in Ecuador.

On September 1, 2020, the Council of the City of Cuenca approved a referendum application for submission and consideration to the Ecuadorian Constitutional Court (the “Constitutional Court”) related to mining activities in Cuenca water sources at the request of a special interest group called the Cabildo Popular Por El Agua De Cuenca. The Company continues to be of the opinion that the request, and any other potential referendum requests, are politically motivated. We have been advised by legal counsel that the request is unconstitutional and, like the four previously denied requests as detailed below, does not meet all the criteria and standards for approval by the Constitutional Court. We expect that this new request will also be rejected by the Constitutional Court. The Loma Larga deposit is located in the Canton of Cuenca.

Historical Referendum Applications

The Constitutional Court has denied four such requests since June 2019 to hold referendums related to mining activities within the Province of Azuay and other provinces. The Constitutional Court denied the requests stating the standards and criteria previously established by the Constitutional Court to hold a referendum regarding mining activities were not met in each request.

Previously, the Constitutional Court reviewed the issue of holding referendums related to the cancellation of valid and legally granted mineral rights which would by extension impact the historical and future investment of concession holders in mining, development and exploration projects. The Constitutional Court ruled substantively that local referendums that would have retroactive effects on legally granted mining rights violate the rights of mining concessionaires. The conclusion reached by the Constitutional Court was based on the principle of legal certainty which is granted by the Constitution to Ecuador.

We have been advised by our legal counsel that previous rulings set a precedent that any future referendum requests related to mining activities should not impact our legally granted mining concessions within Ecuador, and the related potential future exploration, development and mining activities on such concessions. If future referendum requests which meet the criteria previously set by the Constitutional Court are allowed to proceed, the potential impact should be related to future mineral rights not yet granted based on legally valid laws, rules and regulations.