Tahoe to host conference call on Monday,
September 10th at 10am ET (7am PT)
Tahoe Resources Inc. (“Tahoe” or the “Company”) (TSX:
THO) (NYSE: TAHO) reports additional information regarding the
Company’s understanding of the Guatemalan Constitutional Court’s
final resolution issued on September 3, 2018 (“the resolution”)
related to the Escobal mining license.
Jim Voorhees, Tahoe Resources President and Chief Executive
Officer, commented: “While we are disappointed that the
Constitutional Court has made the decision to maintain the
suspension of the Escobal mining license during the court ordered
ILO 169 consultation process, we are pleased that a resolution has
finally been reached after a prolonged period of inaction in the
legal system. The final resolution provides a comprehensive path
forward for the Ministry of Energy and Mines (MEM) to conduct the
ILO 169 consultation as well as the specific requirements of each
of the parties involved. Upon the completion of the consultation
process and the other requirements outlined in the resolution, we
expect to be in a position to restart operations at Escobal.”
Mr. Voorhees continued: “It is our firm belief that a productive
Escobal is in the best interest of all of our stakeholders,
including the Government of Guatemala, our workforce, the local
communities, the Xinka indigenous communities, our suppliers, and
Tahoe’s shareholders. We will respect the court’s decision, and we
will support MEM in fostering a thorough, productive, and
good-faith consultation process with the goal of restarting
operations at Escobal in a manner that is mutually agreeable to the
Xinka indigenous communities included in the ILO 169 process. We
also intend to use this time to engage with other community members
who are interested in productive dialogue with the Company. Once
this process is complete, we look forward to restarting operations
at Escobal and becoming a contributing member of the Guatemalan
economy once again.”
Information Regarding the Consultation Process
The Guatemalan Constitutional Court’s resolution outlines a four
stage consultation process that provides a legal path towards
restarting the Escobal mine. The four stages include: (1) review,
(2) pre-consultation, (3) consultation and (4) Supreme Court
verification.
Stage 1 –
Review: Before the consultation can start, the Ministry of
Environment (MARN) is required to work with the original consultant
responsible for Escobal’s Environmental Impact Study (EIS) issued
in 2011 in order to reconfirm the area of influence. The original
EIS defined the area of influence as 10 communities within the
municipality of San Rafael Las Flores, where the Escobal mine is
located. Upon their review and reconfirmation of the area of
influence, MARN is required to issue a formal resolution that
defines the area to be used by the Ministry of Energy and Mines
(MEM) during the ILO 169 consultation process.
Stage 2 –
Pre-Consultation: The formal consultation process starts
with the pre-consultation stage. The primary purpose of the
pre-consultation stage is to define and agree to the terms,
timeline and mechanisms under which the consultation will take
place. This stage is to be moderated by MEM and to include various
government agencies, ministries, academic institutions and
community leaders along with Minera San Rafael (MSR)
representatives.
Stage 3 – ILO 169
Consultation: During the consultation stage, the formal
dialogue process takes place, in accordance with the terms agreed
to during Stage 2. The principal counterparties involved in the
dialogue process during this stage are limited to three: the Xinka
indigenous communities who reside in the project’s area of
influence (or their designated representatives), MSR’s
representatives, and MEM, as the process coordinator.
Stage 4 – Supreme Court
Verification: Upon conclusion of the consultation process,
MEM is required to submit the details and final results of the
consultation process to the Guatemalan Supreme Court. The Supreme
Court will then hold a hearing to certify with all three parties
that the ILO 169 consultation process as outlined in the
Constitutional Court’s resolution has been followed. After
verification by the Supreme Court of the consultation process and
the completion of other studies requested in the resolution, the
Escobal license can be reinstated and the Company will be permitted
to restart operations.
Information Regarding ILO 169
ILO 169 is the United Nations International Labor Organization
(ILO) convention regarding Indigenous and Tribal Peoples in
Independent Countries. The cornerstone principles of the ILO 169
Convention are consultation and participation – principles that
Tahoe embraces. The Convention is intended to be an instrument for
good governance and a tool for conflict resolution and
reconciliation of diverse interests. The Convention does not
contemplate a veto of development projects. In the case of the
Escobal mine, a successful consultation process will identify any
concerns from the Xinka indigenous communities in the area of
influence and seek to determine, in good faith, acceptable
mitigations to those concerns in order for the mine to restart
operations.
Additional Requirements
In addition to the ILO 169 consultation process held by MEM, the
Constitutional Court also established other requirements that must
be completed as a condition for the Company to restart operations
at Escobal, including studies related to archaeology, health, and
environmental compliance to confirm that the mine is meeting
required standards.
Timeline for Completion:
The Constitutional Court resolution does not define a timeline
for completion of the consultation process. It does mandate,
however, that all parties must agree to a satisfactory timeline
during the pre-consultation stage. While we cannot predict the
timeline for completion of the consultation process, in a case
involving the OXEC hydroelectric plant, MEM completed the
consultation within 6 months.
Conference call
Tahoe will host a conference call for the investment community
on Monday, September 10th at 10am ET (7am PT) to discuss the
resolution in more detail as well as the Company’s plans moving
forward. Those wishing to join the call can do so using the
telephone numbers listed below. The call will also be webcast and
available on the Company’s website at www.tahoeresources.com.
Participant call-in numbers:1-800-319-4610 (toll free from
Canada and the U.S.)1-604-638-5340 (international)
About Tahoe Resources
Tahoe Resources is a mid-tier precious metals company with a
diverse portfolio of mines and projects in Canada, Guatemala and
Peru. Tahoe is led by experienced mining professionals dedicated to
creating sustainable value for all of its stakeholders through
responsible mining. The company is listed on the TSX (“THO”) and
NYSE (“TAHO”) and is a member of the S&P/TSX Composite, the TSX
Global Mining indices and the Russell 2000 on the NYSE.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
This press 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 US Exchange Act, 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.
All statements, other than statements of historical fact, are
forward-looking statements. Generally, these forward-looking
statements can be identified by the use of forward-looking
terminology such as “plans”, “expects”, “is expected”, “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 include, but are not limited to, statements related to
the Guatemalan Constitutional Court’s formal resolution regarding
Escobal’s mining license, the requirement that MEM complete ILO 169
Consultation before the mining license can be reinstated, the
description of the four stage process outlined in the resolution
and the Company’s expectation that it will be permitted to restart
operations once the Guatemala Supreme Court has verified the
consultation process and the other requirements of the
Constitutional Court’s final resolution have been complied
with.
Forward-looking statements are based on certain assumptions and
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 assumptions include the assumption that compliance with the
Constitutional Court’s final resolution will result in the Company
being permitted to restart operations at Escobal, and such risks
include the timing for completion and results of the proposed ILO
169 Consultation with the Xinka communities in the region of the
Escobal mine and the risk that the Supreme Court does not verify
the consultation process or the risk that the Company is seen as
not having complied with all of the terms of the Constitutional
Court’s final resolution. Assumptions, risks and uncertainties are
discussed in more detail in our 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 management 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 forward-looking statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such forward-looking
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 the Company, 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 the Company’s operating environment. The Company
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 as, and to
the extent required by, applicable securities laws.
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version on businesswire.com: https://www.businesswire.com/news/home/20180907005407/en/
Tahoe ResourcesAlexandra Barrows, Vice President Investor
Relationsinvestors@tahoeresources.com+1.775.448.5812
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