SYDNEY: Big River Gold Ltd has formally signed a Protocol, through its wholly owned subsidiary Cascar Brazil Mineração Ltda with the Brazilian State of Rio Grande do Norte (RN).
The intention of the Protocol is to provide incentives and assistance, including tax concessions, for the development of the Company’s Borborema Gold Project, in that state.
The Borborema Project will be the largest project in RN with construction planned to commence in 2020.
The Company’s Executive Director, Andrew Richards, travelled to Rio Grande do Norte last week to meet with the governor, Prof Maria Fátima de Bezerra, and sign the Protocol in an official ceremony.
Rio Grande do Norte is actively pursuing projects that could be developed within the state and putting in place meaningful mechanisms to encourage new investment that will prioritise the use of local firms and labour.
The Protocol is non-binding but ensures that new projects have access to the full co-operation and assistance of State departments for power, roads, water (CAERN) and environment (IDEMA), as well as the deferment or reduction in taxes and tariffs(ICMS) for a variety of equipment including major capital items and supplies such as electricity and fuel used in production.
Reduced tax rates are in addition to the Company’s eligibility for the Federal Sudene tax concessions for projects in that part of regional Brazil that will see company tax rates below 16%.