Ann: Republic secures Social Licence for Amayapam, page-3

re: Ann: Republic secures Social Licence for ... REPUBLIC SECURES SOCIAL LICENCE FOR AMAYAPAMPA
PROJECT ADVANCES TOWARDS DEVELOPMENT
Key Points
Amayapampa Social Licence now secured signed by the Company and relevant local
Authorities.
The Social Licence is a significant milestone achieved and critical to accelerating financing
discussions for development of the Amayapampa Gold Project.
Successful signing strongly supported by the Bolivian Minister for Mining and Metallurgy, Sr
Jose Pimentel, and local Government Senator, Sr Efrain Condori.
Social Licence provides increased control over the Projects development and operating
schedules and it ensures necessary land for the Project to operate on.
The Authorities who have signed the Social Licence have acknowledged that it has been signed
with free, prior and informed consent.
The Company believes this is the first formal Social Licence obtained for a mining project in
Bolivia.
The Directors of Republic Gold Limited (Republic or the Company) today announce that the Company,
through its Bolivian subsidiary Minera Nueva Vista, has signed the Amayapampa Social Licence with
Authorities from the communities around the Amayapampa Gold Project in Bolivia (the Project).
The Social Licence is a key step for the Company to be able to develop the Project and obtain development
finance.
The Social Licence has been signed by the following Authorities of the Project area: -
The Jilanco (leader) of the Cabildo of Janta Palca and other authorities from Janta Palca and its three
villages; Janta Palca, Ocuro and Acoyo to the east of the Project.
The General Secretary of the Union of Mine Workers of Amayapampa and members of the Union
Directory, representing the 280 union members of the Project.
The Authorities of the village of Pullukeri to the west of the Project.
The Authorities of the village of Amayapampa immediately adjacent to the Project.
Workers from the villages of Pasuta Pampa and Chojnuma to the south of the Project.
Republics Managing Director, John Kelly, said:
This has been an extraordinarily long and protracted process and the securing of the Social Licence is a
coup for Republic. The successful signing of the Amayapampa Social Licence was the culmination of one
month of intensive negotiation, meetings and work. The successful signing of the Social Licence is
testament to the strength of the Companys relationship with the relevant Bolivian authorities, both
governmental and local.
The Board would particularly like to thank the Companys social consultant, Mr Scott Rankin, who has been
involved extensively with the communities over recent months and prepared the ground for the communities
to feel comfortable in signing the final document.
I would also like to thank Senator Efrain Condori, the local Government Senator for the Amayapampa
region, for his involvement in 18 straight hours of negotiations and meetings on the day before the signing.
The involvement of the Minister for Mining and Metallurgy, Sr Jose Pimentel, was also crucial in achieving
the final outcome, as were a number of our key Bolivian staff, particularly Rafael de Urioste, the Companys
Communications Manager. This Social Licence provides the Company with the necessary tools to expedite
financing for the Project and realise the potential of what will be Bolivias largest gold mine once developed.
Socialisation Process
The Social Licence incorporates the following crucial elements for the Company and the Project: -
The Social Licence will continue to evolve, however it is in place for the life of the Project and for any
other future mining activities within the existing mining concessions owned by the Company within
the jurisdiction of the Cabildo of Janta Palca and the village of Amayapampa.
The communities that have signed the Social Licence will allow any land, water or operating
schedules (24 hours per day/365 days per year) necessary for the Project.
The communities have acknowledged the social benefits contributed by the Company to-date.
The communities will respect the needs of the Company in operating the Project.
The operation of the Project will be based upon the principles of collaboration, cooperation,
coordination, communication, transparency, mutual respect and democracy.
The communities have acknowledged that the Social Licence has been entered into on the basis of
free, prior and informed consent. This is a crucial Equator Principles requirement. The Equator
Principles have as signatories, all of the worlds major resource financing institutions.
The Social Licence incorporates the following crucial elements for the communities: -
The Project will be operated to worlds best environmental practice.
The Company will allow independent environmental monitoring of the Project through the setting up
of a Community Environment Committee and the appointment of environmental monitors from the
communities.
The Company will respect existing community uses and customs.
The Company will adequately train the workforce, including women in the communities.
The Company will assist the communities in the formulation of Community Development Plans.
The Company will negotiate a series of community petitions received from the communities.
The Social Licence process is an ongoing one in Bolivia. The Bolivian Government is currently drafting a new
Bolivian Mining Code, which is expected to be completed within the next few months. Part of this code will
include maiden provisions for future Social Licences for mining projects. Because there is an absence of any
formal social licence legislation, the Company believes that this Social Licence is the first obtained in Bolivia.
Once this new Mining Code is in place, the Company will extend the socialisation process of the Project to
other communities near the Project. The multi-stage socialisation process designed by the Company, i.e.
communities who have signed the Social Licence first and then other communities to follow, has been
endorsed by the Minister for Mining and Metallurgy.