Agreement with Indigenous Communities for Coringa development

Agreement with Indigenous Communities for Coringa development

Serabi Gold plc (AIM:SRB, TSX:SBI), the Brazilian-focused gold mining and development company, announces that it has signed an agreement with the representatives of the indigenous communities (together “the Parties”) confirming their support for the long-term development of the Coringa project and setting out the steps to be followed to complete the consultation process (“the Baú TI Agreement”).

The agreement has been signed with Kabu Institute (“Kabu”) and the Mantino Indigenous Association (“Mantino”) who together represent all of the communities of the Baú Indigenous Territory (“Baú TI”) and is the culmination of an extended period of engagement with the indigenous communities to fully understand and provide assurances regarding their expectations about the project. The discussions have been transparent and conducted with the knowledge of the relevant authorities in Brazil including the offices of the public prosecutor and represent a significant step in cancelling restrictions regarding the issue of new licences. The agreement has been presented and received approval of the Public Prosecutor’s Office and the Federal Court.

Highlights

• The Parties have agreed not to take actions to suspend the development of the Coringa project in recognition of the long term direct and indirect local economic benefits.
• The Parties agree that the licences and titles granted to date by the National Mining Agency (“ANM”) and the State environmental agency (“SEMAS”) for the Coringa project are valid.
• Over the next 180 days the Parties will complete all remaining aspects of the consultation process in compliance with Convention No 169 of the International Labour Organisation (“ILO 169”).
• The Parties will adopt all necessary procedures within their control for the implementation of definitive mining in accordance with prevailing legislation and observing indigenous rights.
• The Parties have each undertaken to co-operate and take individual and joint responsibility for meeting the commitments they have made to each other.
• The Parties will permit SEMAS and the ANM to make all necessary efforts to analyse or maintain the current licences and will not prevent them from proceeding with the analysis of applications for licence renewals or from the issue of new licences.