Peru might be revoking Canadian mining licenses

The Peruvian Department of Energy and Mines is working on a report aimed at overturning a number of decrees that have granted Nuevo Arcoiris S.A.C, a subsidiary of Canada's Tesoro Minerals Corp (TSXV: TES), certain mineral exploration rights. The report is drawn up following a meeting between the Minister of Energy and Mines, Jaime Galvez, the Head of the Cabinet of Ministers, Violeta Bermúdez, the Congresswoman Angelica Palomino and the Mayor of Tambogrande, Alfredo Rengifo. Tambogrande is the predominantly agricultural community in which the mineral rights in question are located. It is located in the north-western department of Piura. The rights were granted on December 10, 2020 by Supreme Decrees 027-2020-EM and 028-2020-EM. The documents state that Nuevo Arcoiris may acquire and hold mineral rights and other related rights, including surface rights, water rights, and other rights necessary to conduct exploration and other exploitation activities, in 21 mineral rights. Since the rights are within 50 kilometers of the Peruvian state border with Ecuador, a supreme judicial decree must be issued by the Peruvian President and the Council of Ministers, according to Article 71 of the Constitution, granting permission to hold the mining concessions. But according to Palomino, who is from Piura, the people of Tambogrande are against mining in the region and Minister Galvez has taken note of their demands. The report is to be submitted to the entire cabinet on January 20, 2021, in whose hands the decision would be made as to whether the decrees are to be repealed or not. If the decrees are not overturned, then Nuevo Arcoiris can proceed with the title proceedings for the 21 concessions before the Mining and Metallurgy Geological Institute.