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Mandalay Resources Announces Force Majeure For Cerro Bayo Mine

Kitco News

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.

By Allen Sykora of Kitco News; asykora@kitco.com

 

Hecla Withdraws Planned Offering Of Senior Notes

Friday June 30, 2017 08:00

Hecla Mining Co. (NYSE: HL) says it is withdrawing its previously announced offer of $500 million of senior notes due in 2025 since “current terms and conditions were not sufficiently attractive for the company to move forward.” In addition, a concurrent tender offer to purchase its 6.875% senior notes due in 2021 has also been terminated.

By Allen Sykora of Kitco News; asykora@kitco.com

 

Endeavour Mining Acquires Avnel With Its Kalana Project

Friday June 30, 2017 08:00

Endeavour Mining Corporation (TSX: EDV) has agreed to acquire Avnel Gold Mining Ltd. (TSX: AVK) in an all-share transaction for approximately $122 million, the companies announced this week. The transaction has been approved by the boards of directors of both companies. Avnel holds an 80% interest in the Kalana gold project in Mali and holds significant exploration permits in the surrounding area. Kalana is a fully permitted feasibility-stage project with a single open-pit constrained reserve of approximately 2 million ounces grading 2.8 grams per tonne. According to the feasibility study, it has an 18-year mine life and an expected production of 101,000 ounces per year at an average all-in sustaining cost of $784 per ounce, Endeavour says. Sébastien de Montessus, president and chief executive officer of Endeavour, says Kalana “fits well within our strategy of building a high-quality portfolio of long-life, low AISC assets with exploration upside. Furthermore, this acquisition expands our footprint in Mali and reinforces our project pipeline, which will allow us to continue to leverage our in-house construction expertise.”

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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