Battle Mountain files petition

Battle Mountain Gold (BMG-N) has filed a petition in a state superior court for the reinstatement of water rights and the water quality permit for the Crown Jewel project in Washington state.

The major is challenging a verdict issued by the state’s pollution control board.

Situated in the north-central part of the state, Crown Jewel has been in the permitting phase since 1992. Delays in the procedure have been bruising to the company and its 46% partner Crown Resources (CRRS-Q).

After the pollution control board reversed the water rights and vacated the water permit, Battle Mountain chose to write down the carrying value of the asset, which amounted to US$35.9 million.

A production decision is contingent on the resolution of the court case.

At full production, the operation would contribute 185,000 oz. annually at a cash cost of less than US$160 per oz.

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