REG - SolGold PLC - MOU for Sustainable Hydro-Solar Energy at Cascabel

SolGoldAnnouncement

04/03/2024 07:00

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RNS Number : 4282F  SolGold PLC  04 March 2024

4 March 2024

SolGold plc

("SolGold" or the "Company")

SolGold Announces MOU for

Sustainable Hydro-Solar Energy at Cascabel Project

 

SolGold PLC (LSE & TSX: SOLG) is pleased to announce the signing of a
Memorandum of Understanding ("MOU") with Grupo Empresarial Semaica (Semaica
Business Group), a major construction company in Ecuador, and Enerhydra, an
American company, whose partners have participated in large projects
throughout Latin America, and have developed seven hydroelectric projects in
Ecuador, and Constructora Nacional S.A., a prominent construction company with
extensive experience in hydroelectric development in Ecuador. This
collaboration aims to spearhead a significant hydro-solar initiative to power
SolGold's flagship Cascabel Project ("Cascabel") in Northern Ecuador. The MOU
delineates the shared objectives and responsibilities of each party towards
the development of a sustainable Power Project ("Project") that will deliver
approximately 200 megawatts of clean, renewable energy to the Cascabel site.

The MOU encompasses key considerations such as a potential Power Purchase
Agreement (PPA), financing arrangements, construction responsibilities,
technical aspects, project operation, and the ultimate end-user of generated
energy. This agreement sets the stage for further technical assessments,
facilitating progress toward a more definitive agreement while concurrently
advancing Cascabel.  SolGold will not be directly responsible for financing,
building, or operating the power project; instead, its role will focus on
leveraging its position as an end-user to qualify for discounted power rates
upon Project completion. Additionally, SolGold is committed to supporting its
partners in fundraising efforts. Importantly, all terms of the agreement align
with the shared commitment of both parties to environmental stewardship and
sustainable economic development.

Scott Caldwell, CEO and President of SolGold Ecuador expressed his enthusiasm,
stating, "Cascabel is already a remarkable project, but the prospect of
harnessing clean hydroelectric and solar energy elevates its potential even
further. When we speak of world-class mines, it is about more than tonnes of
ore; it is about the impact and legacy of the project locally and globally.
 This endeavour could position Cascabel as one of the world's largest
copper-gold mines aiming to achieve a carbon-neutral footprint. By embracing
green energy to extract copper, we are actively contributing to the green
revolution and leading the way for others to do the same. I am delighted to
formalize this MOU with Semaica Business Group, Enerhydra, and Constructora
Nacional, esteemed innovators and leaders in their fields."

It is envisioned that the Project's financing will be secured through a
combination of sources, including international financial institutions and
other global entities specializing in sustainable energy investments. These
partnerships could provide the necessary capital to fund construction and
operational expenses, ensuring the Project's successful implementation. The
utilization of hydroelectric and solar power sources offers the Project
significant potential cost savings over traditional energy sources, ensuring
long-term operational efficiency and sustainability. These renewable energy
sources provide a reliable and consistent power supply, minimizing the risk of
disruptions and enhancing operational stability.

Furthermore, this initiative is expected to have a profound positive impact on
local communities surrounding the Cascabel. Through job creation, skill
development, and infrastructure improvements, the Project will support
economic growth and enhance the overall quality of life for residents in the
region.

Grupo Empresarial Semaica, with a rich history dating back to 1956, has
established itself as a leading construction company in Ecuador, renowned for
its expertise and commitment to quality. Semaica has successfully executed
various projects across various sectors, including infrastructure development,
commercial construction, and renewable energy initiatives. Notable examples of
Semaica's projects include the construction of highways, mine tunnels,
bridges, and hydroelectric power plants, demonstrating its capabilities in
delivering large-scale, complex projects that contribute to Ecuador's economic
growth and development.

Ing. Mauricio Martinez Fernández, President of Semaica Business Group, added,
"We are thrilled to embark on this partnership with SolGold. The world's
demand for copper is ever-growing, and Ecuador requires increased energy
capacity. Semaica is honoured to address these global and local needs by
collaborating on one of Ecuador's largest private energy initiatives. We are
dedicated to advancing this Project sustainably in cooperation with all
stakeholders involved."

Enerhydra is a Brazilian-Argentinian engineering firm based in the United
States with a strong presence in Ecuador, specializing in the design and
implementation of innovative energy solutions. Utilizing its extensive
experience and technical expertise, Enerhydra has played a pivotal role in the
development of numerous hydroelectric projects throughout the Americas. From
feasibility studies to project execution, Enerhydra has consistently delivered
tailored solutions that optimize energy production and minimize environmental
impact. Notable examples of Enerhydra's projects include the design of
hydroelectric power plants in Brazil, Peru, and Ecuador, demonstrating a
proven track record in developing sustainable energy infrastructure that meets
the needs of local communities while promoting long-term environmental
sustainability.

Bénard Torres, CEO of Enerhydra, remarked, "This MOU marks an auspicious
beginning for what we envision as a world-class renewable energy project in
Ecuador. With our engineers' extensive experience in hydro projects across the
Americas, this initiative holds immense promise for Ecuador's energy security,
supporting its economic and social development goals."

Constructora Nacional is an Ecuadorian construction company operating in
Ecuador since 1974.  They are experts in surface work and have worked closely
with the Semaica Business Group in the past.  Executive President José
Rafael Armijos commented, "The proposed energy solution presents an
exceptional opportunity for all collaborating entities and carries profound
significance for Ecuador's energy landscape. The integration of clean hydro
and solar energy holds the promise of substantial benefits for local
communities and the environment."

The Project will adhere to stringent regulatory standards and environmental
safeguards throughout every development phase. By fully complying with local
and international regulations, the partners are committed to ensuring that the
Project is developed responsibly and ethically.

Recognizing the importance of stakeholder engagement, the partners will
actively involve local communities, government agencies, and environmental
organizations in the Project's planning and implementation. By fostering open
dialogue and addressing concerns, the partners aim to build trust and create
shared value for all stakeholders.

 

CONTACTS

 Scott Caldwell

 SolGold Plc (CEO)                                                   Tel: +44 (0) 20 3807 6996

 Tavistock (Media)

 Jos Simson/Gareth Tredway                                           Tel: +44 (0) 20 7920 3150

ABOUT SOLGOLD

SolGold is a leading resources company focused on the discovery, definition
and development of world-class copper and gold deposits and continues to
strive to deliver objectives efficiently and in the interests of shareholders.

The Company operates with transparency and in accordance with international
best practices. SolGold is committed to delivering value to its shareholders
while simultaneously providing economic and social benefits to impacted
communities, fostering a healthy and safe workplace, and minimizing
environmental impact.

SolGold is listed on the London Stock Exchange and Toronto Stock Exchange
(LSE/TSX: SOLG).

See www.solgold.com.au (http://www.solgold.com.au) for more information.
Follow us on X @SolGold_plc

 

CAUTIONARY NOTICE

News releases, presentations and public commentary made by SolGold plc (the
"Company") and its Officers may contain certain statements and expressions of
belief, expectation or opinion which are forward looking statements, and which
relate, inter alia, to interpretations of exploration results to date and the
Company's proposed strategy, plans and objectives or to the expectations or
intentions of the Company's Directors, including the plan for developing the
Project currently being studied as well as the expectations of the Company as
to the forward price of copper. Such forward-looking and interpretative
statements involve known and unknown risks, uncertainties, and other important
factors beyond the control of the Company that could cause the actual
performance or achievements of the Company to be materially different from
such interpretations and forward-looking statements.

Accordingly, the reader should not rely on any interpretations or
forward-looking statements and save as required by the exchange rules of the
TSX and LSE or by applicable laws, the Company does not accept any obligation
to disseminate any updates or revisions to such interpretations or
forward-looking statements. The Company may reinterpret results to date as the
status of its assets and projects changes with time expenditure, metals prices
and other affecting circumstances.

This release may contain "forward‑looking information." Forward‑looking
information includes, but is not limited to, statements regarding the
Company's plans for developing its properties. Generally, forward‑looking
information can be identified by the use of forward-looking terminology such
as "plans", "expects" or "does not expect", "is expected", "budget",
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that certain actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved".

Forward‑looking information is subject to known and unknown risks,
uncertainties and other factors that may cause the actual results, level of
activity, performance or achievements of the Company to be materially
different from those expressed or implied by such forward‑looking
information, including but not limited to: transaction risks; general
business, economic, competitive, political and social uncertainties; future
prices of mineral prices; accidents, labour disputes and shortages and other
risks of the mining industry. Although the Company has attempted to identify
important factors that could cause actual results to differ materially from
those contained in forward-looking information, there may be other factors
that cause results not to be as anticipated, estimated or intended.  There
can be no assurance that such information will prove to be accurate, as actual
results and future events could differ materially from those anticipated in
such statements. Factors that could cause actual results to differ materially
from such forward-looking information include, but are not limited to, risks
relating to the ability of exploration activities (including assay results) to
accurately predict mineralization; errors in management's geological modelling
and/or mine development plan; capital and operating costs varying
significantly from estimates; the preliminary nature of visual assessments;
delays in obtaining or failures to obtain required governmental, environmental
or other required approvals; uncertainties relating to the availability and
costs of financing needed in the future; changes in equity markets; inflation;
the global economic climate; fluctuations in commodity prices; the ability of
the Company to complete further exploration activities, including drilling;
delays in the development of projects; environmental risks; community and
non-governmental actions; other risks involved in the mineral exploration and
development industry; the ability of the Company to retain its key management
employees and skilled and experienced personnel; and those risks set out in
the Company's public documents filed on SEDAR+ at www.sedarplus.ca
(http://www.sedarplus.ca) . Accordingly, readers should not place undue
reliance on forward‑looking information. The Company does not undertake to
update any forward-looking information, except in accordance with applicable
securities laws.

The Company and its officers do not endorse, or reject or otherwise comment on
the conclusions, interpretations or views expressed in press articles or
third-party analysis.

 

 

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