Month: May 2016

Goldgroup Mining Inc. announces it has consented to the restructuring and sale by Monarch Gold Corp. of substantially all of its assets and operations to Cascadia Goldfields Company Ltd. Pursuant to the restructuring and sale, Cascadia assumed the obligations of Monarch in respect of a CAD $2,500,000 loan previously made by the Company to Monarch (see press release on June 18, 2015), which is now overdue, and granted security in favour of the Company over all of the assets and operations acquired by Cascadia. Pursuant to the restructured loan, Cascadia will be obligated to make the following payments:

GoGold Resources Inc. is pleased to announce the release of financial results for the three and six months ending March 31, 2016. The Company recorded revenue of $5.1 million from the sale of 348,991 silver equivalent ounces at a cash cost of $6.78 per silver equivalent ounce in the quarter. The Company continues to be a low cost operation with cash costs of $2.73 per silver ounce using gold as a bi-product credit.

Mark Brennan, President and CEO of Sierra Metals commented, “Despite the challenges faced with the restructuring program at Yauricocha, the Company continues to have a strong balance sheet and liquidity to drive operations and expand output and reduce costs at its Cusi silver mine in Mexico. Furthermore, we have had tremendous success with our brownfield exploration programs with the recent discovery of the Esperanza Zone at the Yauricocha Mine and mineralization extensions at the Bolivar copper mine in Mexico. The brownfield exploration program is continuing and has the potential to transform the capabilities of our assets in both Peru and Mexico. We look forward to keeping you updated on our progress.”

The New Rights Plan was adopted in connection with the amendments to Canadian securities laws governing the take-over bid regime that came into effect on May 9, 2016, and was not adopted in response to any proposal to acquire control of MAG. While these amendments address, in part, concerns related to ensuring that MAG’s shareholders and the Board have adequate time to consider and evaluate an unsolicited bid and to ensuring that the Board has adequate time to identify, solicit, develop and negotiate value-enhancing alternatives, the Company believes these amendments do not fully protect shareholders from unequal treatment. The New Rights Plan seeks to ensure that MAG’s shareholders have an equal opportunity to participate in a change of control transaction. The New Rights Plan is not intended, nor will it operate, to prevent take-over bids.

“Q1 was a solid start to the year in terms of operations” stated Interim CEO Mark Backens. “We are seeing the benefits of the mine plan adopted in Q4 2015. Our cash costs for the quarter ($761/oz) and all-in sustaining cash costs ($848/oz) were particularly strong and were respectively 18% and 12% lower compared to Q1 2015. We were able to generate significant cash from operations and this allowed us to materially reduce our mine-level payables during the quarter. Based on this strong start to the year we remain on track to achieve our 2016 guidance of 75,000 to 85,000 gold ounces with cash costs of approximately $750 to $850 per gold ounce sold.”

Subsequent to the first quarter, Odyssey reported that the environmental permit application submitted in June 2015 had been denied in Mexico. “Although this was a disappointing and surprising decision, we believe that this project will ultimately be approved. Odyssey and our partners continue to work towards approval of the environmental permit for the dredging and extraction of phosphate sands at the ‘Don Diego’ deposit. We have filed new documents with the Mexican authorities and we have hired additional environmental experts and other advisors to move the project forward. We can assure you, that Odyssey and its partners remain committed to pursuing the ‘Don Diego’ phosphate dredging project through ultimate approval,” said Mark Gordon, Odyssey President and Chief Executive Officer.

The Company intends to use the net proceeds of the Offering towards the mill and mine expansion at La Guitarra mine to 1,000 tpd, to further advance the roasting analysis and testing at La Encantada mine, and to allow the Company to increase the amount of development and exploration across the Company’s six operating mines as well as for general corporate and working capital purposes.

Fred Stanford, President & CEO of Torex stated: “The team continues to exceed ramp-up expectations. Safety and environmental performance have been excellent, and production results have been consistently ahead of plan. With 19,900 ounces of gold produced in April, more than 1,000 ounces were produced per operating day. Above plan tonnages helped with this achievement, but above plan grades also made a significant contribution. The team is now entrenching the operating routines as we move toward ‘steady state’ at full production levels. Looking forward, the revised life of mine plan has a mine life that has been reduced to 8.5 years from 10 years. The team is putting the finishing touches on exploration plans that will seek to extend the mine life from a number of near mine targets.”