July 12 (Bloomberg) -- South American Silver Corp. will receive compensation for being stripped of its Bolivian silver mining concession, state news agency ABI reported, citing the country’s Vice President Alvaro Garcia Linera.
Bolivia’s government, which on July 10 reached an agreement with local communities to revoke the company’s Malku Khota concession, is entitled to recover control of its resources, ABI cited Garcia as saying. The government can finance the exploration and development of the deposit located in the southwestern Andes, it said.
South American Silver’s exploration Vice President Felipe Malbran said the company, which hasn’t been notified yet, was willing to hold talks with the government, according to ABI.
The Vancouver-based company said yesterday it objects to the Bolivian’s government’s decision and will pursue “all legal, constitutional and diplomatic options.”
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