DPM's Loma Larga environmental licence gets revoked

Executive Summary

• DPM Metals Inc. received notice from Ecuador’s Ministry of Environment and Energy that the environmental licence for its Loma Larga gold project has been revoked.
• The revocation follows a review of the project's water‑use studies, which regulators concluded would not adversely affect local water supplies; however, the decision remains a material setback to the project timeline.
• Management is evaluating all options—including potential remediation, legal recourse, or alternative development pathways—to preserve shareholder value and maintain optionality for the Loma Larga asset.

Key Details

• License Revocation: The environmental licence issued in June 2023 for Loma Larga was formally withdrawn by the Ministry of Environment and Energy.
• CEO Statement: David Rae, President & CEO, emphasized DPM’s commitment to high environmental standards and noted that independent water studies “consistently demonstrate that the project would have no adverse impact on water supply.”
• Impact Assessment: The revocation is expected to halt current development activities at Loma Larga until a resolution is reached.
• Next Steps: DPM is conducting a comprehensive review of all available options, which may include:
• Engaging with Ecuadorian regulators to address concerns and seek reinstatement.
• Pursuing legal remedies or appeals.
• Modifying the project’s environmental management plan.
• Considering alternative project configurations or locations.
• Shareholder Focus: Management highlighted its duty to “preserve value and maintain optionality for our shareholders” amid the regulatory challenge.

Notable Quotes

“We are deeply concerned by the decision to revoke our environmental licence… In light of this development, we are assessing all available options to preserve value and maintain optionality for our shareholders.” – David Rae, President & CEO, DPM Metals Inc.