Many of us who have been closely following developments with Emgold’s rapidly sinking effort to obtain funding for its quest to re-open the Idaho-Maryland Mine, immediately recognized Dunn Capital Partner’s October 23rd press release announcing their decision to drop support for Emgold as significant news.
One friend assured me the same day that “the Union will have to run this story,” because it’s big news, particularly since Dunn’s statement directly contradicts Emgold’s explanation reported in The Union’s most recent (10/20/09) article on the subject, “Mine’s controversial re-opening hits $ snag:”
Emgold recently announced it had cut off negotiations with Dunn. Watkinson said his firm was partly scared off by a lawsuit filed by another company against Dunn for allegedly not coming through on a similar financing deal.
But here’s Dunn’s explanation:
Ottawa, Canada, October 23, 2009 –(PR.com)– After much research and deliberation, Dunn Capital Partners has decided to withdraw their support of the Idaho-Maryland Mine project in Grass Valley, California. Based on a unanimous vote, Dunn Capital Partners requires all extractive industry projects to support private equity firm’s social responsibility for the environment and the community that they invest in.
The decision was several-fold, based on review of Emgold’s proposed IMM project’s impact to an urban location, citizen petitions, the risk of water loss to local wells, the Surface Mining and Reclamation Act and hydrologist reports. In combination of inadequate support documents to prove the adherence to California’s Environmental Quality Act, Dunn Capital Partners had no choice but to end talks with Emgold on the IMM project. “As a private investment company, it is our responsibility to be more pro-active in taking an extra step to assess how a project can impact the area and regions of that community,” explains Michael Bailey, Head of Equity Capital Markets. Paying attention to the reaction generated by Californians of the targeted region has reinforced their decision.
Why hasn’t The Union yet reported anything about Dunn’s press release? (Maybe it has and I missed it? But I couldn’t find any mention of Dunn in a search of the Union’s website just now, using their own search function).
Perhaps we should suggest a new slogan for The Union, to signify what appears to be its guiding philosophy, especially with regard to news its editor/publisher seems not to like:
If You Wait Long Enough, It’s No Longer News