As part of the Franco-Nevada net smelter returns financing agreement, which it entered into in May 2020, Franco-Nevada has agreed to contribute a total of US$150,000 per calendar year for three years investing in one or more distinct environmental, social and governance (ESG) projects jointly with SolGold. SolGold will match or exceed Franco-Nevada's contribution towards these projects.
Franco-Nevada has confirmed its sponsorship of SolGold's community recycling and waste management initiative. SolGold said that community waste management is a recurring theme when the company conducts participatory community surveys and is considered a major concern for the communities and the local government alike.
The communities collaborating in the waste management initiative are the Lita parish and La Carolina parish in the Imbabura province with benefits extending to a population of around 7,000 in both communities. SolGold said the initiative has the potential to increase the well-being and living standards of the communities in close proximity to the mine site and create sustainable independent businesses while reducing pollution, including plastic waste, in the local environment.
This initiative aims to improve the quality of life in local communities by training members in both communities on recycling and composting methods; more education on increased waste consciousness, with the aim of minimising waste that can't be recycled or reused; implementing a waste collection centre to satisfy the demand of projected population growth for the next 10 years in both parishes; and the creation of an economically independent small business within these communities which will generate self-sustaining income and provide employment for community members.
Andrea Scacco, mayor of Imbabura capital Ibarra, commented: "Seven thousand inhabitants of this area are involved in this waste management initiative that, in coordination with our municipality and based on a detailed study by professional experts, will undoubtedly optimise the quality of life of the surrounding communities. Alternatives for solid waste management will be implemented and education will be given on effective recycling and composting methods, to minimise waste and to form, with civic and ecological awareness, a recycling business that will be independently managed by the communities, providing them not only income, but a substantial improvement of its environment and its wonderful natural surroundings, which is our primary pride."
Andrew Taunton, vice president of SolGold in Ecuador, commented: "Improving waste management removes health hazards and potential harm to the environment and improves the overall level of care for community property. By this programme the community plans to adopt waste management principles used successfully in other areas of SolGold's operations, which as a result we hope will generate not only income, but improved waste disposal procedures, increase community pride in keeping public spaces clean and safe from harmful materials and reduce the pollution of local rivers for others downstream."
Eaun Gray, senior vice president of Franco-Nevada, added: "Franco-Nevada is delighted, in partnership with SolGold, to support this initiative that benefits the community. We hope these initial steps are indicative of the benefits that the communities can realise over time through the development of the Cascabel deposit."
The Alpala deposit is SolGold's main target in the Cascabel concession, which is located on the northern section of the Andean copper belt in Ecuador's Imbabura province. Earlier this week, the first drilling at the Tandayama-America target at Cascabel indicated "significant resource potential".
