Dallas, Texas 02/20/2014 (FINANCIALSTRENDS) – The $857 million market capped gold mining firm McEwen Mining Inc (NYSE:MUX) announced earlier last month that it had received final go ahead form the environmental agency for its proposed construction project at El Gallo. The go ahead also covers the operations of the mining property once the construction project is completed.
The much in demand green permit was issued to McEwen Mining Inc (NYSE:MUX) by the “Secretariat of Environment and Natural Resources (SEMARNAT) for the State of Sinaloa, Mexico.” The agency has approved the proposed plan where in the land indentified at its El Gallo 2 property has been allowed to be converted from its current agricultural use to that fit for mining.
This final hurdle clearance, will allow for the development phase of the project to begin. On completion, the mining operations are expected to produce close to 95.000 ounces of gold equivalent per year. McEwen Mining Inc (NYSE:MUX) has projected that it would require close to $150 million additional funds to complete the construction of the mine and commence mining operations.
Expressing his happiness at the receipt of the coveted government nod to execute the project in quick time, McEwen Mining Inc (NYSE:MUX) Owner and Chairman Rob McEwen has been quoted to have said that, “We would like to congratulate our teams in Toronto and Mexico for their dedication and hard work. In addition, McEwen Mining wishes to extend its sincere gratitude and thanks to the SEMARNAT offices in Sinaloa State and Mexico City. This process took 5 months from start to finish and shows what is possible when the public and private sectors work together to achieve a common goal.”
Since 21st January when this approval news was made public, the stock has appreciated by 15.2 percent. It is currently trading at $2.87, which is 10 percent below its 52 week high price point of $3.19.