TriStar Gold Reports Positive Court Decision in Civil Public Action on Castelo de Sonhos
Rhea-AI Summary
TriStar Gold (OTCQB: TSGZF) reported a favorable court procedural ruling on December 3, 2025 in the Civil Public Action over the Castelo de Sonhos project.
The judge declined the Federal Prosecutor's Office request for an injunction suspending the environmental licence and ordered evidence production: MPF and FUNAI to file evidence within 30 working days, then the State of Pará 10 working days and TriStar 5 working days. The company estimates this sequence will conclude in March 2026. TriStar says FUNAI confirmed Indigenous lands lie >20 km from the directly affected area and that the preliminary licence (LP) remains effective with no restrictions.
Positive
- Judge declined injunction request, preserving current process
- Evidence-production timeline set to conclude by March 2026
- Licença Prévia (LP) remains effective with no restrictions
- FUNAI confirmation: Indigenous lands >20 km from project
Negative
- Ongoing civil action continues, creating legal uncertainty until March 2026
News Market Reaction
On the day this news was published, TSGZF gained 8.46%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
TSGZF gained 2.57% while several gold peers also rose (e.g., FMANF +12.08%, MGMLF +6.55%), but one peer (ONGRF) dipped -0.73%, suggesting a mixed, stock-specific tone rather than a clear sector-wide move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 03 | Legal process update | Positive | +8.5% | Judge moves Civil Public Action into evidence phase, LP remains effective. |
| Sep 26 | Legal defense update | Positive | +2.9% | Company and state reinforce defense of licensing; LP remains unrestricted. |
| Aug 06 | Litigation initiated | Negative | -18.8% | Federal Prosecutor files action seeking suspension of environmental licensing. |
| Jun 18 | Technical report filing | Neutral | +0.0% | NI 43-101 technical report filed supporting prefeasibility study update. |
Legal and permitting developments around Castelo de Sonhos have driven pronounced, mostly aligned price reactions, with negative litigation updates drawing the sharpest downside move.
This announcement continues a series of updates on the Castelo de Sonhos project. On Aug 6, 2025, news of a Civil Public Action and potential suspension of licensing coincided with a -18.83% move. Subsequent communications on Sep 26, 2025 and Dec 3, 2025 emphasized the robustness of licensing, distance from Indigenous Lands, and maintenance of the LP, with aligned positive moves of 2.86% and 8.46%. A technical report filing on Jun 18, 2025 saw no price change, underscoring that legal milestones have been the main trading catalysts.
Market Pulse Summary
The stock moved +8.5% in the session following this news. A strong positive reaction aligns with past trading around legal updates, where litigation milestones on Castelo de Sonhos have driven sharp moves, such as the -18.83% drop on lawsuit initiation and the later +8.46% move on a favorable ruling. Investors have focused on the security of the environmental licence and distance from Indigenous Lands. However, ongoing legal proceedings and regulatory uncertainties could limit follow-through once initial enthusiasm fades.
Key Terms
civil public action regulatory
environmental licence regulatory
licença prévia regulatory
preliminary license regulatory
AI-generated analysis. Not financial advice.
Scottsdale, Arizona--(Newsfile Corp. - December 3, 2025) - TriStar Gold Inc. (TSXV: TSG) (OTCQB: TSGZF) (the "Company" or "TriStar") is pleased to provide an update on the Civil Public Action from the Federal Prosecutor's Office ("MPF") seeking an injunction suspending the environmental licence for the Castelo de Sonhos gold project; please see the Company's August 6, 2025 press release for details.
In a recent decision, the Judge declined to rule on the injunction request from the MPF, instead moving the case forward along the normal path. He ordered the MPF and FUNAI (the National Foundation of Indigenous Peoples) as co-litigants to file a reply and identify any evidence they wish to produce, within 30 working days. Once these two parties have filed, the State of Pará and the Company will be provided 10 and 5 working days, respectively, during which the evidence that they wish to utilize will be indicated. This sequence of events is estimated to end in March 2026.
Nick Appleyard, TriStar's President and CEO stated: "We view the Judge's decision to move the case along the typical litigation path as very positive, with evidence-production being the next phase. The State of Pará has already announced in its defense that the injunction must be denied, and it will request a technical expert report to show there is no impact. It will be an important stage of the case, as we are very confident in the robustness and reliability of our studies."
Mr. Appleyard continued, "As we head into the evidence production, it is important to keep in mind that the Baú and Menkragnoti Indigenous Lands are over 20 km from the Directly Affected Area of the Castelo de Sonhos gold project, which exceeds the reach of any possible future impacts from the project and the threshold in the federal Interministerial Ordinance No. 60/2015. Although the project is located far from Indigenous Lands, a fact that was confirmed by FUNAI, distance was not TriStar's guiding factor, TriStar also carried out technical studies that confirmed there are no impacts of any kind."
Figure 1: Castelo de Sonhos location relative to Protected and Conserved Areas
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/4509/276659_14f7b37f94337af8_002full.jpg
While this action is ongoing, the Licença Prévia (Preliminary License or LP) for Castelo de Sonhos remains effective, with no restrictions. Please see Figure 1 above for a visual of the Castelo de Sonhos project location relative to Indigenous Lands.
About TriStar
TriStar Gold is an exploration and development company focused on precious metals properties in the Americas that have the potential to become significant producing mines. The Company's current flagship property is Castelo de Sonhos in Pará State, Brazil. The Company's shares trade on the TSX Venture Exchange under the symbol TSG and on the OTCQB under the symbol TSGZF. Further information is available at www.tristargold.com.
On behalf of the board of directors of the company:
Nick Appleyard
President and CEO
For further information, please contact:
TriStar Gold Inc.
Nick Appleyard
President and CEO
480-794-1244
info@tristargold.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Forward-Looking Statements
Certain statements contained in this press release may constitute forward-looking statements under Canadian securities legislation which are not historical facts and are made pursuant to the "safe harbour" provisions under the United States Private Securities Litigation Reform Act of 1995. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "expects" or "it is expected", or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements in this press release include, the Company's expectations regarding the outcome of the Civil Public Action referenced above, as well as the related injunction application. Readers are cautioned that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause a change in such assumptions and the actual outcomes and estimates to be materially different from those estimated or anticipated future results, achievements or position expressed or implied by those forward-looking statements. Risks, uncertainties and other factors that could cause the Company's plans to change include the ongoing litigation process, and legislative, political or economic developments in Brazil. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/276659
FAQ
What did TriStar announce about the Castelo de Sonhos court decision on December 3, 2025 for TSGZF?
How long does TriStar have to respond in the evidence-production phase for TSGZF?
Does the Castelo de Sonhos preliminary licence remain effective for TSGZF while the case proceeds?
What distance did TriStar report between Castelo de Sonhos and nearby Indigenous lands for TSGZF?
When is the next procedural milestone in the Castelo de Sonhos case for TSGZF?
