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EC

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TSXV:EC TSX Venture Common Stock
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Ecometals Limited Announces the Resolution of All Environmental Regulatory Liabilities at Serra do Navio, Brazil

31/07/2013 1:00pm

Marketwired Canada


Ecometals Limited (the "Company") (TSX VENTURE:EC)(BERLIN:GDQ)(FRANKFURT:GDQ)
announced today the final resolution of all regulatory liabilities arising from
environmental damage allegedly caused during the original mining operations
conducted by Icomi at Serra do Navio, Brazil ("SdN").


IMAP, the State Environmental Agency, had refused the renewal of the Company's
Environmental license pending settlement of the civil action brought by the
State Environmental Prosecutor (the "Prosecutor") against the Company in 2009
regarding the legacy liabilities. The Prosecutor in turn required satisfying
that the Company's contribution to environmental rehabilitation at SdN was
sufficient as well as clarification of the Company's intentions to be a
responsible corporate citizen.


On June 19, 2013 the Company signed an agreement with the Municipality of SdN
under which the Company's subsidiary Ecometals Manganes do Amapa ("EMAL") would
pay an amount to the Municipality of SdN equal to 5 % of EMAL's audited net
income, on an annual basis, as restitution for the damage caused by the original
mine owners.


This morning, at a Reconciliation Hearing in the Amapa State Civil Court before
Judge Marcella Peixoto Smith, the Prosecutor endorsed the agreement between the
Company and the Municipality of SdN. He also took note of the Company's
intentions to support certain community projects in SdN and elsewhere. The
Company has 120 days to liaise with relevant local Government authorities and
NGO's to prepare and cost its plans to contribute to a limited number of local
causes identified as deserving its support. The Company will also work with the
Municipality of SdN to find ways to commercialize the acacia plantations which
formed part of the original mine rehabilitation plan, to control the spread of
the plantations and to replace them with other native species where possible. In
the meantime, while setting penalties for the Company in the event of
non-compliance with the terms agreed at the hearing, the Prosecutor will
withdraw the civil action so allowing the renewal of the Company's license. The
Judge will now give notice of the settlement of the action to IMAP and the
Company anticipates the license to be issued soon thereafter, valid for three
years and uncapped in terms of tonnages permitted to be shipped in that period
(the original license was capped at 600,000 mt).


Commenting on the judgment, William Lamarque, CEO of the Company, said, "We are
delighted to have put the legacy environmental issues behind us in a settlement
that is manifestly fair to all parties. This represents a giant step forward in
the commercialization of our manganese stockpiles at SdN and a key corporate
uncertainty removed. The Mayor and Municipality of SdN have been highly
energetic and effective supporters of our efforts to start work on the
stockpiles and we look forward to reciprocating this with our financial
settlement and by contributing where we can to local good causes."


About Ecometals

Ecometals Limited is a Canadian-listed mineral exploration and development
company focused on mineral resources in Latin America. Apart from its interests
in manganese, Ecometals also has gold exploration activities in Ecuador. 


This news release contains forward-looking information and forward-looking
statements (collectively, "forward-looking information") under applicable
securities laws, concerning the Company's business, operations, condition and
prospects, as well as management's objectives, strategies, beliefs and
intentions. Forward-looking information is frequently identified by such words
as "may", "will", "plan", "expect", "estimate", "anticipate", "believe",
"intend" and similar words referring to future events and results, including
with respect to the issuance of the Company's environmental license at Serra do
Navio. This forward-looking information is subject to known and unknown risks,
uncertainties and other factors that may cause actual results to differ
materially from those expressed or implied by the forward-looking information.
Factors that may cause actual results to vary materially include, but are not
limited to, the failure of IMAP to issue the Company's environmental license at
Serra do Navio, changes in general economic conditions or conditions in the
financial markets, and unanticipated operational or technical difficulties. Such
forward-looking information is based on a number of assumptions, including but
not limited to, there being no significant decline in existing general business
and economic conditions; political stability in the South American countries
where the Company conducts business. Should one or more risks and uncertainties
materialize or should any assumptions prove incorrect, then actual results could
vary materially from those expressed or implied in the forward-looking
information and accordingly, readers are cautioned not to place undue reliance
on this forward-looking information. The Company does not assume the obligation
to revise or update this forward-looking information after the date of this news
release or to revise such information to reflect the occurrence of future
unanticipated events, except as may be required under applicable securities
laws.


Neither TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Ecometals Limited
William Lamarque
Chief Executive Officer
wglamarque@ecometalslimited.com


Ecometals Limited
Information:
Enquiries: info@ecometalslimited.com
www.ecometalslimited.com

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