VANCOUVER, British Columbia,
Sept. 10, 2017 /CNW/ -- Tahoe
Resources Inc. (TSX: THO, NYSE: TAHO) ("Tahoe" or the
"Company") reported today that the Guatemalan Supreme Court issued
a decision that reinstates the Escobal mining license of Tahoe's
Guatemalan subsidiary, Minera San
Rafael ("MSR"). This decision reverses the Supreme Court's
preliminary decision to suspend MSR's license in connection with an
action brought by the anti-mining organization, CALAS, against
Guatemala's Ministry of Energy and
Mines ("MEM"). CALAS alleges that MEM violated the Xinca indigenous
people's right of consultation in advance of granting the Escobal
mining license to MSR.
As part of its decision, the Supreme Court ordered MEM to
conduct a consultation under ILO Convention 169. Per the ruling,
MEM has been ordered to consult with the Xinca indigenous
communities within a certain geographic area and report results of
the consultation to the satisfaction of the Court within 12 months.
Tahoe is seeking clarification from the Supreme Court on the
specific geographical departments to be included within the scope
of MEM's consultation. Although Tahoe believes that MEM complied
with ILO Convention 169 before it issued the Escobal license, it
will fully support MEM in any of its future indigenous engagement
and will encourage MEM to involve independent ILO 169 experts to
assist in this process.
The Company expects that CALAS, the Xinca Parliament and other
interested parties may appeal the Supreme Court's ruling to the
Constitutional Court. The following parties have standing and the
ability to appeal the ruling: MSR, MSR's employees and vendors, the
Xinca Parliament, CALAS, and judicially designated municipalities.
After the Supreme Court rules on MSR's motion for clarification,
MSR will have a right to appeal the matter to the Constitutional
Court if it deems necessary. The Constitutional Court is expected
to rule on all appeals by the end of the year.
While the Supreme Court ruling allows Escobal operations to
commence immediately, the illegal roadblock at Casillas is ongoing,
preventing an immediate restart of operations at this time. The
Company continues to work with the government, community leaders
and international mediation experts to resolve the roadblock
situation peacefully and expeditiously. Upon a resolution of the
blockade, the Company expects to resume production at Escobal
within a week.
Ron Clayton, Tahoe Resources
President and Chief Executive Officer, commented: "We are pleased
that the Supreme Court of Guatemala has abided by legal precedent and
restored MSR's license to operate the Escobal mine. The Company
respects the rights of indigenous people in all jurisdictions in
which we operate and are always willing to engage with any
community members in those jurisdictions. We remain focused on
peacefully resolving the blockade at Casillas. While we support the
rights of all peoples to peacefully protest, we do not support the
illegal blockage of public highway by non-locals which has had a
devastating economic impact on our employees, contractors and
communities. Once the road is re-opened at Casillas, we will resume
full operations without disruption and put our valued employees and
vendors back to work, support the economy of our local communities
and return value to our shareholders."
As reported previously, until operations begin, the Company is
only able to access $75 million of
the $300 million capacity of its
revolving credit facility entered on July
18, 2017, and may continue to be subject to events of
default. Upon resumption of operations, the Company expects to
provide an update on Escobal production that has been deferred to
future periods. The Company expects to update previously suspended
guidance for the gold operations, including exploration, later in
the month.
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, any review or appeal of the definitive decision from the
Supreme Court of Guatemala which
reinstated 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 decision being overturned by the Constitutional
Court in Guatemala; the timing,
results and implications to the Company of the court-ordered
consultation process; 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 an appeal of the Supreme Court's definitive
decision, a decision from the Constitutional Court of Guatemala on any appeal of the definitive
claim, the factors to be considered by the Constitutional Court in
any appeal of the definitive decision, the timing and the
likelihood of success of any appeal of the definitive decision, a
timely and effective consultation process being conducted by the
Guatemalan government, 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.
Alexandra Barrows
investors@tahoeresources.com
Tel: 775-448-5812
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SOURCE Tahoe Resources Inc.