| ||Mon Dec 8, 2014|
Firestone Ventures - Guatemalan Congress Proposes New Royalty Regime
| ||Toronto, Ontario -- December 8, 2014 -- Firestone Ventures Inc. announces that on 28 November 2014, the Guatemalan Congress agreed to increase mining royalties prescribed in national mining legislation. Only the signature of President Otto Perez Molina is now required to effect changes. As far as we can ascertain, this legislation proceeded without any consultation or discussion with the mining industry.|
If royalties are increased, all metals production (except for nickel) will be subject to two royalties totaling ten percent (9% for the national government and 1% for the producing project municipality). Currently, the law imposes a royalty of one percent for zinc production; however, zinc producers voluntarily pay 3% by agreement with both the mining industry association and the Ministry of Mines and Energy. "It is unfortunate that the Guatemala Congress is moving forward with such drastic increases. This will have serious impact to existing and any new foreign investment in Guatemala resource projects" says Dr. Keith Barron, Chairman of Firestone Ventures Inc. "The resulting impact for base metal projects such as Firestone's zinc projects, that typically have smaller margins due to the nature of the deposit may be severe and may require a complete reconsideration of our business plan".
This proposed change to mining royalties is one of a package of changes to laws that affect many industrial sectors and all changes are intended to help balance the 2015 national budget. Firestone Ventures Inc. officers are presently in Guatemala to meet with officials in order to discuss the impact of Congress' recent actions, with both the Guatemalan government and mining industry players.
For further information, contact:
Tel: 416 367-3200
F. Carson Noel
Tel: 416 367-3200
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. This News Release includes certain "forward-looking statements". These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company's mineral properties, and the Company's financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments, including legislative changes in royalties instituted by the Republic of Guatemala and applicable municipalities; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.
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