TSX: GPR | NYSE American:
GPL
VANCOUVER, BC, June 29, 2020 /PRNewswire/ - Great Panther
Mining Limited (TSX: GPR); (NYSE-A: GPL) ("Great Panther" or "the
Company") announces an agreement with Nyrstar International B.V.
and Nyrstar Netherlands (Holdings) B.V. (together, "Nyrstar") and
NN2 Newco Limited, the parent of the Nyrstar entities, to amend
certain agreements (the "Amending Agreements") in respect of the
Company's remediation obligations in connection with Great
Panther's 2017 acquisition of the Coricancha mine ("Coricancha")
from Nyrstar. The amended agreements include the Share
Purchase Agreement under which the Company purchased Coricancha
from Nyrstar and the related agreement for Coricancha under which
Nyrstar agreed to fund a portion of the bond to secure remediation
costs for Coricancha in future in respect of a permanent closure of
the mine.
Under the Amending Agreements, Nyrstar has agreed to extend its
remediation bond obligations beyond the original June 30, 2020 expiry date. The Amending
Agreements provide that Nyrstar will maintain a $7.0 million bond until June 30, 2021 and $6.5
million for the following year, effectively deferring Great
Panther's funding requirements for these amounts until June 30, 2022.
"We are very pleased with this agreement with Nyrstar that
reduces our short-term funding requirements and improves our
ability to advance Coricancha in a manner that meets our mutual
interests," stated Rob Henderson,
President and CEO. "This latest agreement highlights Great
Panther's commitment to realizing Coricancha's significant
potential, particularly with the recent strength in gold and silver
prices."
The Amending Agreements provide that Great Panther will use
commercially reasonable efforts to seek an amendment to a closure
plan for certain legacy tailings facilities which Nyrstar is
obligated to fund. The objective of the amendment is to seek
a technically superior closure plan for approval by the Ministerio
de Energía y Minas de Perú with potentially lower costs. In
addition, Great Panther has agreed to pay interest on the bond
amounts Nyrstar has agreed to continue to fund at an annual rate of
3-month USD LIBOR plus 5%, and to defer any relocation of the
legacy tailings until an agreement on a modified closure plan is
achieved or there is a legal requirement to move the
tailings. The Amending Agreements also provide Nyrstar with
certain offer rights for Coricancha concentrates which are
secondary to those of a third party. The Amending Agreements
do not impact on the maximum reclamation obligation that Nyrstar is
obligated to fund under the Share Purchase Agreement.
ABOUT GREAT PANTHER
Great Panther is a growing gold and silver producer focused on
the Americas. The Company owns a diversified portfolio of
assets in Brazil, Mexico and Peru that includes three operating gold and
silver mines, four exploration projects, and an advanced
development project. Great Panther is actively exploring
large land packages in highly prospective districts and is pursuing
acquisition opportunities to complement its existing
portfolio. Great Panther trades on the Toronto Stock Exchange
trading under the symbol GPR, and on the NYSE American under the
symbol GPL.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
This news release contains forward-looking statements within the
meaning of the United States Private Securities Litigation Reform
Act of 1995 and forward-looking information within the meaning of
Canadian securities laws (together, "forward-looking statements").
Such forward-looking statements may include, but are not
limited to, statements regarding the ability to obtain government
approval for a modification to the closure plan for Coricancha's
legacy tailings facilities and Coricancha's potential.
These forward-looking statements involve known and unknown
risks, uncertainties and other factors that may cause the actual
results, performance or achievements expressed or implied by such
forward-looking statements to be materially different. Such
factors include, among others, risks and uncertainties relating to
potential political, regulatory, and social risks involving Great
Panther's operations in a foreign jurisdiction, developments with
respect to COVID-19 that may impact the Company's operations, the
potential for unexpected costs and expenses, fluctuations in metal
prices, fluctuations in currency exchange rates, physical risks
inherent in mining operations, operating or technical difficulties
in mineral exploration, changes in project parameters as plans
continue to be refined, and other risks and uncertainties,
including those described in respect of Great Panther, in its
annual information form for the year ended December 31, 2018 and material change reports
filed with the Canadian Securities Administrators available at
www.sedar.com and reports on Form 40-F and Form 6-K filed with
the Securities and Exchange Commission and available at
www.sec.gov.
There is no assurance that such forward looking statements will
prove accurate; results may vary materially from such
forward-looking statements; and there is no assurance that the
Company will be able to identify and acquire additional projects or
that any projects acquired will be successfully developed.
Readers are cautioned not to place undue reliance on forward
looking statements. The Company has no intention to update
forward looking statements except as required by law.
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SOURCE Great Panther Mining Limited