White Rock, British Columbia (FSCwire) - Standard Tolling Corp. (TSX-V: TON, Frankfurt: GA0, “Standard Tolling” or the “Company”) announces that it has filed legal action with the District Attorney in the Department of La Libertad, Peru to prosecute the parties involved in the mindless destruction of Company property at the entrance of its gold plant on September 2, 2015. The damage was caused by a farmer, who convinced the local magistrate to issue a civil order against the Company for allegedly blocking a public access way, a completely untrue allegation. At the same time the civil order was issued, and against the instructions of the authorities, the perpetrator began destroying civil works and company property adjacent to the public road using two large front-end loaders. Although the authorities were present for the attack, they failed to uphold their duties as public officials and did nothing to stop the attack. Consequently, the Company will use the compelling evidence it has assembled to pursue financial restitution for all damages and lost business and will seek criminal charges through the integrity of the Peruvian judicial system. The Company has shared the matter with regional and central authorities, who support a higher standard for public officials.Other than the entrance, the processing plant was untouched. The economic loss to the Company’s investment was limited and the truck scale, being the most valuable piece of equipment damaged, only requires minor repair. In the meantime, portable scales are being used and ore purchase operations have re-commenced. The entrance and the tolling area of the plant have been redesigned and the truck scale will be moved to another area within the property.The Company appreciates the support of its employees during this ordeal. The Company will update its’ shareholders with any further developments.
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Standard Tolling (TON.v) is one of those new start-up toll milling companies in Peru that plans to take ore produced by local small-scale miners and become their processor of choice, buying the rock from the locals, producing gold and making its cash from the difference. In short, the Dynacor Gold (DNG.to) model, except that Standard Tolling (TON.v) is one of the very few of these toll mill start-ups that's going to the North of Peru rather than the coastal South.
It's also been pumped by several junior newsletter writers, which means the news today hasn't gone down very well at all with that particular band of sheep:
And when reading that, remember the IKN First Law of Junior Mining NRs: Anytime a mining company feels obliged to tell you about something that isn't shiny and wonderful and great and wrapped up in wholly positive prose and wording, things must be very bad indeed.
But there are two more things to add:
1) The stock price has been hit this week, but as the event in question happened on September 2nd the company managed to keep things quiet. I don't mind admitting that I hadn't heard anything on the mining grapevine (though will say I haven't been looking hard, what with one thing and another in my real world).
2) I don't own this one and haven't pulled the trigger, but I do quite like it and have checked out the company, met the people etc. In the toll milling sub-universe, it's the one that's most attracted me so far therefore this news event may turn out to be a buying opportunity. We'll see on that.