The Amalia Project is comprised of 1,681 hectares of granted exploration licences and 8,613 hectares of licence applications. The licence applications have been processed by the state authority in Chihuahua and approved for title.
In May 2023, The Mining Reform, a new federal mining law became effective and makes major changes to Mexico’s Mining Law including proposing to cancel existing exploration licence applications.
It is unconstitutional to retroactively apply laws in Mexico, and management of Radius believes the new laws should not apply to the Company’s’ existing projects and licences. As have almost all active exploration and mining companies in Mexico, the Company has filed legal challenges to the application of the reforms on all its properties and projects. Opposition members of the Mexican Senate (National Action Party parliamentary group) filed an action of unconstitutionality before the Supreme Court to annul the Mining Law Reform. As a result, the Supreme Court annulled the major law reforms of the current government including Electoral, Energetic and National Guard laws reforms, and Radius’s management believes the current constitutional challenge to the Mining Law Reform has a high chance of success.
One of the court filings made by the Company is a legal demand with a Federal Court in Mexico to obtain title to the Amalia 4 concession, a component of the Amalia Project which had been in the application stage. The mining authority of Chihuahua has processed and approved the submission without fault and passed the license to the Mexico Mining Directorate proposing title issuance. The regulated time for the mining authority to comment and request revision has passed and granting of title is a legal requirement under the mining law. The legal demand filed by the Company is to enforce the granting of title.
Additional information on The Mining Reform may be viewed in Radius Gold’s Interim Management’s Discussion and Analysis – Quarterly Highlights for the Nine Months Ended September 30, 2023 on the Company’s website at www.radiusgold.com and sedarplus.ca