Glamis criticizes proposed municipal mining referendum - Guatemala

Glamis criticizes proposed municipal mining referendum - Guatemala

Thursday, June 9, 2005

BNamericas.com

Nevada-based Glamis Gold (TSX, NYSE: GLG) has strongly criticized efforts by a group of private individuals in the Guatemalan municipality of Sipacapa to hold a referendum on the future of mining activities in the area.

Glamis said it has learned that a small group of private individuals in Sipacapa are planning to hold a referendum on whether or not the municipality wants future mineral development.

The municipality of Sipacapa ceded authority to the group to hold the referendum after coming under pressure from it to do so, Glamis said.

Although Glamis' Marlin gold-silver project is located in the separate municipality of San Miguel Ixtahuacan, the company holds exploration concessions and targets in Sipacapa.

"Glamis has received reports of intimidation by the referendum organizers, including threats to shut off residents' water or burn crops if they vote against the referendum," according to the company.

The vote is expected to take place on June 18 and will be held in public by means of a show of hands, the company added.

Any such referendum would be illegal and unconstitutional for several reasons. Guatemalan law reserves questions of mineral tenure and access to the national government and not to local municipalities, Glamis said.