Canadian miner Belo Sun Mining (TSX: BSX) has secured a final court ruling that permanently dismisses a class action challenging the Indigenous licensing process for its proposed $300-million (C$423-million) Volta Grande gold project in Brazil. The shares gained.

Brazil’s Federal Regional Court of the 1st Region unanimously ruled that the lawsuit must be dismissed because it duplicated an earlier case involving the same claims and requested remedies, and because it missed a statutory deadline, the company said on Monday.

“This final court ruling is a major milestone for Belo Sun and a clear validation of our legal position,” CEO Clovis Torres said in a release. “Other repetitive lawsuits will certainly have the same fate. It reinforces our confidence in Brazil’s judicial framework as we remain focused on advancing the project responsibly.”

The decision removes a significant legal obstacle for the Volta Grande project, which Belo Sun says has the potential to become Brazil’s largest open-pit gold mine. It also narrows one of the project’s long-running permitting risks as the company continues to work through the environmental licensing process and other remaining approvals.

Shares in Belo Sun Mining shot up 25% on Monday to $1.15 apiece in Toronto, before closing at $1.07 a day later, valuing the company at $609 million.

Consultations

The Federal Public Defender’s Office sought to suspend the project’s installation licence pending additional consultations and studies with the Araras da Volta Grande and Jurunas da Paquiçamba Indigenous communities.

But the office did not appeal before a statutory deadline, making the decision final and binding, the court ruled.

Belo Sun said it will continue defending its legal position in Brazilian courts while advancing the project through the remaining permitting process.

The company said it will provide further updates as developments warrant.