VANCOUVER, British Columbia,
Aug. 24, 2017 /CNW/ -- Tahoe
Resources Inc. (TSX: THO, NYSE: TAHO) ("Tahoe" or the
"Company") today reported that it has learned through unconfirmed
sources that the Guatemalan Constitutional Court issued a decision
upholding the lower court's preliminary decision to provisionally
suspend the mining license of Tahoe's Guatemalan subsidiary,
Minera San Rafael ("MSR").
This decision responds to an appeal filed by Minera San Rafael in an action brought by the
anti-mining organization, CALAS, against Guatemala's Ministry of Energy and Mines
("MEM") in May. CALAS alleged that MEM violated the Xinca
Indigenous people's right to consultation in advance of granting
the Escobal mining license to MSR. The Constitutional Court
decision upholds the lower court's preliminary decision to
temporarily suspend the license to operate the Escobal mine until
the definitive constitutional claim is heard on the merits, which
hearing is scheduled for August 28th.
The Court is expected to issue a ruling within the next several
months following the August
28th hearing. The Company understands that
MEM complied with ILO Convention 169 before it issued the Escobal
license.
Top government officials have expressed dismay at the
significant economic, human and environmental impacts resulting
from the decision to suspend the Escobal license. The leading
private sector industrial chamber has taken independent legal
action to challenge the suspension that has damaged many thousands
of workers and their families.
The municipal road to the Escobal mine continues to be blocked
by protestors. The Company continues to work diligently with
the government, community leaders and others to resolve the
situation peacefully and expeditiously, however, the road blockage
shows no signs of immediate resolution.
As a result of the suspended operations at Escobal, the Company
will continue to reevaluate its previous multi-year guidance. The
financial impacts to the Company are currently under review to
assess effects of the suspended operations to longer term capital
and exploration programs. Until operations are resumed, the Company
will not be able to access the full capacity of the revolving
credit facility entered on July 18,
2017, and may continue to be subject to events of
default.
The Company's balance sheet remains strong, with a quarter-end
cash balance of over $190 million,
and the Company continues to look forward to pursuing its growth
goals in the gold businesses once operations recommence.
About Tahoe Resources Inc.
Tahoe's strategy is to responsibly operate mines to world
standards and to develop high quality precious metals assets in the
Americas. Tahoe is a member of the S&P/TSX Composite and TSX
Global Mining indices and the Russell 3000 on the NYSE. The Company
is listed on the TSX as THO and on the NYSE as TAHO.
Cautionary Note Regarding Forward Looking Statements
This news release contains "forward-looking statements" within
the meaning of Section 27A of the United States Securities Act of
1933, as amended, Section 21E of the United States Exchange Act of
1934, as amended, the United States Private Securities
Litigation Reform Act of 1995, or in releases made by the United
States Securities and Exchange Commission, all as may be amended
from time to time, and "forward-looking information" under the
provisions of applicable Canadian securities legislation,
concerning the business, operations and financial performance and
condition of the Company. Forward-looking statements include, but
are not limited to, the decision of the Constitutional Court which
has the effect of continuing the suspension of the Company's mining
license in respect of the Escobal mine, the time for appeals to be
heard and decided and the likelihood of the provisional decision of
the Supreme Court of Guatemala
being reconsidered and reversed by the Supreme Court of
Guatemala or overturned by the
Constitutional Court in Guatemala;
the timing and likelihood of the road blockage being peacefully
cleared and resolved; the future price of silver, gold, lead and
zinc; the timing and amount of estimated future production, costs
of production, capital expenditures, free cash flow, currency
exchange rate fluctuations; requirements for additional capital;
government regulation of mining operations; environmental risks;
unanticipated reclamation expenses; timing and possible outcome of
pending litigation, title disputes or claims; and limitations on
insurance coverage. Generally, these forward-looking statements can
be identified by the use of forward-looking terminology such as
"plans", "expects" , "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" , "believes", or
variations or comparable language of such words and phrases or
statements that certain actions, events or results "may", "could",
"would", "should", "might" or "will be taken", "occur" or "be
achieved" or the negative connotation thereof.
Forward-looking statements are necessarily based upon a number
of factors and assumptions that, if untrue, could cause the actual
results, performances or achievements of the Company to be
materially different from future results, performances or
achievements expressed or implied by such statements. Such
statements and information are based on numerous assumptions
regarding present and future business strategies and the
environment in which Tahoe will operate in the future, including
the price of silver, gold, lead and zinc, anticipated costs and
ability to achieve goals. In respect of the forward-looking
statements concerning a decision from the Supreme Court of
Guatemala on the definitive claim,
the factors to be considered by the Supreme Court in the definitive
decision and by the Constitutional Court on appeal, the timing and
the likelihood of success that the definitive decision will be
issued, the timing and likelihood of the road blockage being
peacefully cleared and resolved, the potential impacts of the court
decision and road blockage, and the time and expense of the
decision, challenges to such decision and efforts to peacefully
clear and resolve the road blockage, on the Company's operations,
financial condition and liquidity, Tahoe has provided them in
reliance on certain assumptions that they believe are reasonable at
this time. Readers are cautioned that the foregoing list is not
exhaustive. Tahoe's actual results, programs and financial position
could differ materially from those anticipated in such
forward-looking statements as a result of numerous factors, risks
and uncertainties, many of which are beyond the Company's control.
These include, but are not necessarily limited to workings of the
Guatemalan legal system, social unrest and political or economic
instability in Guatemala and the
Company's ability to efficiently resume operations once the
suspension of the mining license is lifted and roadblock is
cleared, and relationships with our partners, including employees,
vendors and community populations.
Certain important factors that could cause actual results,
performances or achievements to differ materially from those in the
forward-looking statements include, among others, silver, gold,
lead and zinc price volatility, discrepancies between actual and
estimated production, mineral reserves and mineral resources and
metallurgical recoveries, mining operational and development risks,
litigation risks, regulatory restrictions (including environmental
regulatory restrictions and liability), changes in national and
local government legislation, taxation, controls or regulations
and/or change in the administration of laws, policies and
practices, expropriation or nationalization of property and
political or economic developments in Guatemala, Peru, and Canada, and other jurisdictions in which the
Company does or may carry on business in the future, delays,
suspension and technical challenges associated with capital
projects, higher prices for fuel, steel, power, labor and other
consumables, currency fluctuations, the speculative nature of gold
exploration, the global economic climate, dilution, share price
volatility, competition, loss of key employees, additional funding
requirements and defective title to mineral claims or property.
Although Tahoe believes its expectations are based upon reasonable
assumptions and has attempted to identify important factors that
could cause actual actions, events or results to differ materially
from those described in forward-looking statements, there may be
other factors that cause actions, events or results not to be as
anticipated, estimated or intended.
Forward-looking statements are subject to known and unknown
risks, uncertainties and other factors that may cause actual
results to be materially different from those expressed or implied
by such forward-looking statements. Such risks, uncertainties and
other factors include but are not limited to; the fluctuation of
the price of silver and gold; opposition to development and mining
operations by one or more groups of indigenous people; actions that
impede or prevent the operations of the Company's mines; the
inability to develop and operate the Company's mines; social unrest
and political or economic instability and uncertainties in the
jurisdictions in which the Company operates; the timing and ability
to maintain and, where necessary, obtain necessary permits and
licenses; changes in national and local government legislation,
taxation and controls or regulations; environmental and other
governmental regulation compliance; the uncertainty in the
estimation of mineral resources and mineral reserves; fluctuations
in currency exchange rates; infrastructure risks, including access
to roads, water and power; and the timing and possible outcome of
pending or threatened litigation and the risk of unexpected
litigation.
For a more detailed discussion of these and other risks relevant
to the Company, see the Company's Management's Discussion and
Analysis for the second quarter of 2017 filed on SEDAR and with the
SEC on August 8, 2017 and our other
public filings available on SEDAR at www.sedar.com, on EDGAR at
www.sec.gov or on the Company's website at
www.tahoeresources.com.
Although Tahoe has attempted to identify important factors that
could cause actual results to differ materially from those
contained in forward-looking statements, there may be other factors
that cause results not to be as anticipated, estimated or intended.
There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements. Forward-looking statements are made as of the date
hereof and, accordingly, are subject to change after such date.
Except as otherwise indicated by Tahoe, these statements do not
reflect the potential impact of any non-recurring or other special
items or of any disposition, monetization, merger, acquisition,
other business combination or other transaction that may be
announced or that may occur after the date hereof. Forward-looking
statements are provided for the purpose of providing information
about management's current expectations and plans and allowing
investors and others to get a better understanding of Tahoe's
operating environment. Tahoe does not intend or undertake to
publicly update any forward-looking statements that are included in
this document, whether as a result of new information, future
events or otherwise, except in accordance with applicable
securities laws.
For further information, please contact:
Tahoe Resources Inc.
investors@tahoeresources.com
Tel: 775-448-5800
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SOURCE Tahoe Resources Inc.