MAPLE GROVE, Minn.,
June 17 /PRNewswire-FirstCall/ --
Affinity Gold Corp. (Pink Sheets: AFYG) ("Affinity" or "the
Company") provides update regarding its Peruvian subsidiary's
change in mining classification and resulting impact on production
plans of its flagship project.
As legally required, and a prerequisite to the upcoming renewal
of the flagship project's concession rights, the Company's
subsidiary, AMR Project Peru, S.A.C. ("AMR") has filed with the
Central Authorities in Lima, Peru,
notification of its ownership of 99.9% by a US Corporation
(Affinity Gold Corp.) which will subsequently change AMR's mining
producer classification. Due to AMR being owned by a
corporation, it will no longer qualify for the mining producer
classification known as a"Pequeno Productor Minero" (PPM),
also referred to as a "Small-scale Mining Producer," under what is
referred to as the "Exceptional Regime." Going forward, AMR
will be subject to the regulatory rules under the "General Regime"
according to the Peruvian General Mining Law.
AMR's current classification under the "Exceptional Regime" as a
"Pequeno Productor Minero" (PPM), a "Small-Scale Mining
Producer," allows for lower concession maintenance fee structure.
In addition, under the "Exceptional Regime", the review and
approval process for the Environment Impact Assessment (EIA)
issuance occurs with the Regional Authorities. AMR's new
classification under the "General Regime" mandates that the EIA
review and approval process occur with the Central Authorities in
Lima.
The review of the EIA by the Central Authority, which is a
process likely to require an additional four to six months to
complete must occur prior to commencing production, which the
company expects to commence production approximately nine (9) to
twelve (12) months from now.
Antonio Rotundo, President and
CFO, commented, "in spite of this additional setback this doesn't
change what we know about our asset. We will continue to move
forward in the development of our project."
About Affinity Gold Corp.: Affinity Gold Corp. is a
mineral exploration and development company engaged in the
acquisition, exploration and development of gold mineralization
properties internationally. Affinity Gold Corp.'s current primary
focus is gold exploration in Peru.
Through its 99.99% owned subsidiary AMR Project Peru, S.A.C.,
Affinity Gold Corp. is the owner of the mining concession title
named "AMR Project" covering 500 hectares and the mining concession
certificate as evidenced by Resolution No.4631-2006-INACC/J granted
to AMR by the Republic of Peru,
National Institute of Concessions and Mining Cadastre on
October 25, 2006 (the "Mining
Concession Rights"), now named as Mining Geological and
Metallurgical Institute of Peru
(INGEMMET).
www.affinitygold.com
For further information please refer to the Company's filings
with the SEC on EDGAR available at www.sec.gov
FORWARD-LOOKING STATEMENTS
This news release may include "forward-looking statements"
regarding Affinity Gold Corp., and its subsidiaries, business and
project plans. Such forward-looking statements are within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and section 21E of the United States Securities and Exchange Act of
1934, as amended, and are intended to be covered by the safe harbor
created by such sections. Where Affinity Gold Corp. expresses or
implies an expectation or belief as to future events or results,
such expectation or belief is believed to have a reasonable basis.
However, forward-looking statements are subject to risks,
uncertainties and other factors, which could cause actual results
to differ materially from future results expressed, projected or
implied by such forward-looking statements. Affinity Gold Corp.
does not undertake any obligation to update any forward-looking
statement, except as required under applicable law.
SOURCE Affinity Gold Corp.