New Gold Inc. (TSX:NGD) has won another Mexican court battle.
In a statement issued Monday, the Vancouver-based gold producer said Mexico City’s Collegiate Appeals Court ruled in favour of the company’s latest appeal regarding the environmental impact statement (EIS) at its Cerro San Pedro mine.
The EIS was nullified in September 2009, and the mine was temporarily shuttered in November after the attorney general of the Mexican environmental enforcement agency (PROFERA) questioned the mine’s environmental impact permit.
Last December, that shutdown order was temporarily rescinded, and in March New Gold said the Federal District Court in San Luis Potosi removed restrictions to the company’s explosives permit.
This latest decision comes after a lower court appeal in July.
The court has advised New Gold that the Collegiate Appeals ruling is a positive step forward for Cerro San Pedro, but has yet to provide a full written decision.
“We are very pleased by this most recent decision and feel it is an important outcome as we work towards a final resolution of the challenges related to the EIS,” said Robert Gallagher, New Gold’s president and CEO.
Despite the permit troubles, Cerro San Pedro produced a record 37,473 ounces of gold in the third quarter at a total cash cost of $151 per ounce.
That helped the company boost its revenue 44% to $127.1 million in the third quarter (See “Precious metals prices boosting New Gold’s bottom line ” – BIV Business Today, November 5).
At press time, New Gold’s shares were up $0.40 to $8.93.