Mandalay Resources Announces Force Majeure For Cerro Bayo Mine
Mandalay Resources Corp. (TSX: MND) announces that subsidiary Compañia Minera Cerro Bayo has started giving notice of a force majeure to the primary customers, suppliers and contractors of its Cerro Bayo mine in Chile. The notice suspends Cerro Bayo’s obligations under contracts with these parties due to the flooding of the Delia NW mine on June 9. Mandalay is also initiating talks with unions about the potential impacts on employees while production is suspended, the company says. Mandalay says the company is reviewing alternatives for the future of mining at Cerro Bayo and is consulting with stakeholders, including employees, unions and government officials. Officials say they hope to provide plans for Cerro Bayo and the impact of the suspension on 2017 production guidance when Mandalay releases its second-quarter financial results, currently expected on August 10.