Majescor Resources Inc

Published : April 13th, 2015

Mining in Haiti on hold amid uncertainty and opposition

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Mining in Haiti on hold amid uncertainty and opposition

CAP-HAITIEN, Haiti (AP) -- The 50-year-old man from the village scrambled up a grassy hill to ask the onsite manager of a U.S. mining company for work. Joseph Tony had heard VCS Mining Inc. was bringing jobs, along with paved roads and electricity, to this corner of rural northern Haiti. "Everybody is waiting," he said.

But Williamcite Noel, the only VCS employee in Haiti, had nothing to offer. Although the company received one of two gold mining permits in December 2012, the project known by the hill on which is located, Morne Bossa, was frozen two months later when Parliament imposed a moratorium on mining activity amid deep concerns about whether the country has the capacity to adequately regulate such a complex industry.

Mining had been seen as a potential new source of revenue and jobs for impoverished Haiti after the January 2010 earthquake devastated the capital in the south. Companies spent $30 million prospecting, with the encouragement of a government eager to bring development to the countryside, where most people get by on subsistence farming and lack even basic services.

But the new era in mining that some had predicted remains out of reach because the Haiti has been unable to enact a revised mining law establishing such fundamental issues as the environmental regulations and royalty revenues.

Now it's too late for this government. The administration of President Michel Martelly, a musician who had little support in the Senate and Chamber of Deputies when he took office in May 2011, was unable to get the law completed and passed before Parliament was dissolved in January. The prospects when a new government takes over next year are uncertain.

"Everything is being put on hold," said Tucker Barrie, vice president of exploration for Majescor Resources Inc., a Canadian company that received the other production permit, for two concessions north of Morne Bossa.

Majescor once had up to 100 workers in Haiti assisting with its exploration, but went down to a single caretaker. After spending $5 million, the company last month turned over its stake to its Haitian subsidiary in exchange for a share of any future royalties. Barrie said that will require the local firm to find a new partner or outside capital.

"There will be little interest until the mining law issues are resolved," he said.

Mining giant Newmont Mining Corp., which was studying Haiti for potential sites in partnership with Eurasian Minerals Inc., suspended active exploration in the country in 2012, according to spokesman Omar Jabara.

Before the post-quake mining push, the mineral extraction industry had been dormant in Haiti since a copper mine near Gonaives closed in the 1970s. The country is believed to have the same veins of copper and gold found across the border in the Dominican Republic and could yield an estimated $20 billion in gold and other metals.

Angelo Viard, the Haitian-American president of VCS, pledged to hire locals, pave roads and bring electricity to the village near his 31-acre claim on Morne Bossa. The company built a basketball court and sponsored a soccer tournament, and Tony said that generated goodwill. "People have a lot of hope in the company," he said.

Many Haitians are not eager to see the development of mining, skeptical of an industry that could pollute a country with a history of weak regulation and environmental problems. Camille Chalmers, an economics professor and member of an advocacy group called the Mining Justice Collective, said any potential benefits for Haitian workers are vastly overstated.

"All the important jobs, with decent salaries, will go to people from abroad," said Chalmers, who has tracked the industry with lawyers from New York University's Global Justice Clinic. "The paved roads and the electricity are for the mines, not for the people."

Chalmers said the delay is good. "We would need a moratorium of at least 10 years to really create the conditions that would enable rational regulation of the industry in the public's interest," he said.

Critics also fear mining companies will have undue influence in a country long plagued by corruption. VCS fended off charges of buying influence after a press release about an upcoming book by author Peter Schweizer reported that the company had named to its board of directors Tony Rodham, a brother of Hillary Rodham Clinton, and ex-Prime Minister Jean-Max Bellerive, who was co-chairman of a reconstruction commission with former U.S. President Bill Clinton.

Viard said Bellerive and Rodham are advisers, not board members, and they were brought in after he already had the permit. "Mr. Rodham is a person who knows the industry and the financial world and may be able to point us to some party who may be interested in investing."

He said the country's uncertain political climate has scared away potential partners. "Any investors we talk to, they say 'It sounds like a great project but it is Haiti,'" said Viard. "People look at the instability, they look at the history."

Bellerive said he is an unpaid adviser, and Haiti should consider mining only if it can ensure that the environment will be protected, local communities are developed in conjunction with any mining and the government is fairly compensated. "I am not really sure we are prepared to face all those issues right now," he said.

Members of Parliament agreed, passing the resolution in December 2012 that halted mining activity after ruling that the permits already issued weren't legal. The government began working on new regulations with help from the World Bank, but critics say the process was being done without sufficient public input and that the draft was never publicly released.

A standoff between Martelly and the Senate over the legislation needed to schedule elections dragged on until Parliament was dissolved in January, ending prospects not just for the mining law but any other significant legislation. Legislative elections are scheduled for August and a presidential election for October.

The new Parliament won't be seated until next January, followed by a new president, who will then nominate a new prime minister and Cabinet in a process that typically takes several months in Haiti.  No one knows when, or even if, the new government will submit mining legislation.

In the meantime, Tony and others like him say they will be waiting for mining jobs and the infrastructure that would have to come with it. "The mine should be exploited so this area can be developed," he says. "It can't stay like this."

Read the rest of the article at sg.finance.yahoo.com
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Gold and Silver Prices for these countries : Dominican Republic | Haiti | All

Majescor Resources Inc

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CODE : MJX.V
ISIN : CA7609603021
CUSIP : 760960104
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Majescor Res. is a gold and cobalt exploration company based in Canada.

Majescor Res. holds various exploration projects in Madagascar.

Its main exploration properties are MISTASSINI, LAC LAPARRE, BAKER LAKE and MIRABELLI in Canada, DARAINA, ANTSAKABARY, ANALALAVA, ANKARAMY and BESAKOA in Madagascar and HAITI in Haiti.

Majescor Res. is listed in Canada and in United States of America. Its market capitalisation is CA$ 2.2 millions as of today (US$ 1.8 millions, € 1.5 millions).

Its stock quote reached its highest recent level on December 21, 2001 at CA$ 9.00, and its lowest recent point on February 19, 2016 at CA$ 0.02.

Majescor Res. has 31 300 000 shares outstanding.

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Financings of Majescor Resources Inc
9/9/2013Announces the Closing of its Non-Brokered Private Placement
8/8/2013Announces Re-Pricing of its Private Placement Offering Previ...
7/30/2013Announces Private Placement Under Temporary Relief Measures
6/25/2013Announces a Non-Brokered Private Placement
5/17/2013Announces the Closing of a Non-Brokered Private Placement
1/22/2013Announces the Closing of the 1st Tranche of a Non-Brokered P...
6/14/2011Announces Extension of Warrants
Nominations of Majescor Resources Inc
7/3/2013Announces the Resignation of a Director
2/11/2010Appoints Daniel F. Hachey as President and CEO /Daniel F. Ha...
Project news of Majescor Resources Inc
4/30/2013(Besakoa)Enters Into Non-Binding Agreement to Sell its 50% Interest i...
6/2/2011(Mistassini)and Strateco Execute Joint Venture Agreement on the Mistassi...
11/27/2008(Mistassini) Plan a Winter Exploration Program and Sign a Definitive Opt...
8/8/2008(South Rae)Outlines Two Significant Uranium-bearing Outcrop Zones
8/5/2008(Baker Lake)Outlines High-Priority Uranium Targets at Baker Lake...
6/19/2008(Baker Lake)acquires De Beers' interest in the Baker Lake property, Thel...
5/29/2008(Mistassini)Lac Mantouchiche Uranium Drill Intersection Improves to 0.21...
4/2/2008(Antsakabary) Options Madagascar Gold and Base Metal Properties to Sunrid...
2/21/2008(Mistassini)STRATECO EXERCISES ITS RIGHT TO OPTION 60% OF MAJESCOR'S URA...
5/17/2007(Otish (mistassini) - Majescor)reviewing strategic options on its 100%-owned Portage diamon...
Corporate news of Majescor Resources Inc
6/17/2016June 15, 2016 Majescor Enters into an Option Agreement for t...
5/26/2016May 25, 2016 MAJESCOR OPTIONS MONTAGNE B LITHIUM PROPERTIES,...
5/16/2016May 12, 2016 MAJESCOR ANNOUNCES THE CLOSING OF A NON-BROKERE...
4/18/2016April 18, 2016 MAJESCOR ANNOUNCES A $500,000 NON-BROKERED PR...
1/19/2016January 19, 2016 CORRECTION ON MAJESCOR SELLS REMAINING INTE...
1/19/2016Correction: On Majescor Sells Remaining Interest in Diamond ...
12/23/2015December 23, 2015 MAJESCOR SELLS REMAINING INTEREST IN DIAMO...
12/23/2015Majescor Sells Remaining Interest in Diamond Royalty, Announ...
10/6/2015October 06, 2015 MAJESCOR ANNOUNCES THE APPOINTMENT OF NEW D...
9/24/2015September 22, 2015 Majescor Announces Share Purchase Warrant...
9/24/2015September 23, 2015 MAJESCOR ACQUIRES 172 CLAIMS USING DIAGNO...
9/18/2015September 18, 2015 MAJESCOR ANNOUNCES SHARES FOR DEBT SETTLE...
9/2/2015September 02, 2015 MAJESCOR SIGNS DEFINITIVE AGREEMENT FOR S...
4/13/2015Mining in Haiti on hold amid uncertainty and opposition
3/3/2015March 02, 2015 MAJESCOR SIGNS BINDING LETTER OF INTENT FOR S...
3/2/2015(Haiti)Signs Binding Letter of Intent for Sale of Haitian Assets
2/12/2015February 12, 2015 TERMINATION OF PROPOSED TRANSACTION WITH A...
2/12/2015IIROC Trading Resumption - MJX
1/23/2015January 23, 2015 MAJESCOR RESOURCES INC. PROVIDES UPDATE ON ...
12/22/2014December 22, 2014 MAJESCOR RESOURCES INC. PROVIDES UPDATE RE...
11/27/2014November 27, 2014 MAJESCOR RESOURCES INC. ANNOUNCES LETTER O...
11/21/2014IIROC Trading Halt - MJX
10/22/2014October 22, 2014 MAJESCOR HELD ITS ANNUAL AND SPECIAL MEETIN...
10/22/2014Majescor Held its Annual and Special Meeting of Shareholders...
10/21/2014October 21, 2014 MAJESCOR REPORTS CONTRUCTION LICENSE AWARDE...
10/21/2014Majescor Reports Contruction License Awarded to Lipari Miner...
4/3/2014Majescor Seeks Opportunities to Diversify Into New Industrie...
10/18/2013.: Resolutions Approved at the Shareholder's Annual and Spe...
10/1/2013Announces Sale of 1% Royalty on Brauna Diamond Project
9/16/2013Board and Management Changes
1/15/2013Reports Inferred Mineral Resource Estimate of 190 Mt Grading...
10/23/2012Reports 35.65 m of 3.23 g/t Au in Hole FB-010; 4.50 m of 9.9...
10/16/2012Announces $2.4 Million Non-Brokered Financing
10/9/2012Intersects 388.5 m of 0.26% Cu, 0.38 g/t Ag, 0.01 g/t Au and...
9/20/2012Intersects 17.5 m of 2.59 g/t Au, 0.95 g/t Ag and 0.14% Cu i...
9/6/2012Intersects 276.4 m of 0.35% Cu, 1.34 g/t Ag, 0,05 g/t Au and...
7/5/2011(Haiti)reases Its Position in Haitian Subsidiary
5/24/2011and SOMINE Contract Buscore Consulting to Manage the SOMINE ...
4/26/2011Appointment of Dr. Tucker Barrie as VP, Exploration
11/5/2009& SACG Start Drilling at the SOMINE.../Majescor et SACG enta...
10/6/2009and SACG discover a new copper-gold showing .../Majescor et ...
12/2/2008Share Consolidation Approved
8/1/2008New Website / Nouveau site Web
2/27/2008and Azimut Outline 392 High-Priority Uranium Targets at Sout...
1/8/2008 Receive Additional Encouraging Uranium Assays from ...
8/8/2007 Partners with Shield Mining to Fast-Track Development of th...
7/5/2007to Receive 1 million Diamonds North Resources shares ...
5/31/2007 Prepares to Drill "Lac Mantouchiche" Uranium
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