Mexican government officials have granted New Gold (NGD-T, NGD-X) an injunction related to the Nov. 18, 2009, government-ordered suspension of operations at the company’s Cerro San Pedro open-pit gold mine in Mexico.
Today’s court ruling temporarily overturns the Mexican environmental enforcement agency’s order to suspend mining operations at Cerro San Pedro.
New Gold says mining operations will restart at Cerro San Pedro and are expected to continue through the duration of the appeal trial.
“We are very pleased with the court’s decision and view this as an important interim step as we continue to work with the government and administrative bodies to find a permanent and mutually-beneficial solution,” said New Gold president and CEO Robert Gallagher in a statement. “We believe the information to be provided during the trial should ultimately result in a positive long-term outcome for the company, and equally as important, for the employees at [New Gold subsidiary] MSX, their families and all of the other key stakeholders of New Gold.”
The company notes that over 500 employees and contractors at the Cerro San Pedro mine and 1,500 indirect jobs could have been impacted if the mine suspension was prolonged.
New Gold’s shares rose nicely on the news, climbing $0.45, or 13.3%, to C$3.84 per share in Toronto and US$0.38, or 11.7%, to US$3.63 in New York.
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