Pacific Rim Mining Corp. (TSX:PMU; AMEX:PMU) has suspended drilling in El Salvador and is reducing its staff there until it's granted a long sought after mining permit for its flagship El Dorado project.
The bulk of Pacific Rim's exploration costs in El Salvador, where it has spent $77 million on gold exploration and development, are consumed by the El Dorado project.
The Vancouver-based gold explorer also plans to slow down activity at its two other gold projects in El Salvador.
Pacific Rim noted that it's not abandoning its El Salvadoran assets, but could not continue to invest millions of dollars to advance its projects in the Central American country until the El Salvadoran government "signals its willingness to proceed with development of El Dorado by granting the mining permit."
Nearly two years have passed since Pacific Rim submitted an environmental impact statement, a critical requirement for receiving a permit.
The company said its rights in El Salvador are being ignored by the country's government and that it will continue to pursue those right though El Salvadoran law and the Central American Free Trade Agreement (CAFTA).
Pacific Rim said it has laid off 42 El Salvador-based employees and that additional layoffs are likely if the permit issue is not resolved.
It is shifting its exploration efforts out of El Salvador to Costa Rica and Guatemala.
Pacific Rim's share price range during the past week: between $0.52 and $0.83; 52-week high: $1.30; 52-week low: $0.48.