VANCOUVER, British Columbia,
March 8, 2018 /CNW/ -- Tahoe
Resources Inc. ("Tahoe" or the "Company") (TSX: THO, NYSE:
TAHO) has been informed that the Constitutional Court of
Guatemala requested additional
information in the legal case regarding Minera San Rafael's Escobal mining license. The
Company has not yet received the formal resolution from the Court
but understands the request requires certain information be
provided to the Court within 15 business days from the date of the
formal resolution. In addition to asking for original copies of
documents submitted last July, some of the information requested by
the Court includes: an anthropological study of the surrounding
communities to establish the current populations of indigenous
people in San Rafael las Flores and several surrounding
communities, a third-party review of the Escobal Environmental
Impact Study and the mitigation measures required by the study, and
a third-party review of the Ministry of Energy and Mines'
consultation process that led to the initial mining license being
granted in 2013. Some of the information requested appears to
examine areas that were not appealed by any of the parties in the
case.
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Ron Clayton, Tahoe Resources
President and CEO: "We are certainly disappointed with
the continued delay in the case and the amount of time it has taken
the Constitutional Court to request this information, but we are
hopeful this means the Court is undertaking a serious review of the
issues in this case, including a review of indigenous populations
by the Ministry of Culture and compliance with International Labor
Organization Convention 169. In the long term, ensuring that the
Constitutional Court is fully informed about these critical issues
will enhance the credibility of its final decision and, in turn,
strengthen the Company's community relationships and social license
to operate. Given that much of the information requested was
provided as part of the initial Court filings in July 2017, we urge the ministries, agencies, and
third parties to comply with the Court's 15-day deadline and the
Court to provide its final ruling quickly thereafter. We strongly
believe that the Court has all the information legally necessary to
resolve this case today and therefore following receipt of this
information, the Court should be prepared to follow legal precedent
by upholding the lower court's ruling to reinstate our
license."
The Company regrets that the termination of additional
Minera San Rafael employees is now
inevitable due to the continued delay in the legal proceedings. In
total, approximately half of the employees will have had their
contracts terminated as a result. Prior to the license suspension,
Minera San Rafael employed 1,030
people, 97% of whom are Guatemalan and 50% of whom are from the
Santa Rosa region.
Tahoe is eager to resume operations at Escobal in order to
return benefit to employees, communities, and the region. Upon
receipt of a favorable resolution from the Court, Tahoe will seek
to restore its workforce. For every month of delay in operations at
Escobal, approximately $4 million in
taxes and royalties are not being paid to the Government of
Guatemala and the local
communities.
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.
For further information, please contact:
Tahoe Resources Inc.
Alexandra Barrows, Vice President
Investor Relations
investors@tahoeresources.com
Tel: 775-448-5812
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
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, timing and possible outcome of pending litigation, including
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 timing and results of the petition or any appeal for the
annual renewal of Escobal's export credential; the time and
likelihood for responses of the Constitutional Court's demands for
additional information and studies and the time, likelihood and
possible outcome of a decision to be issued by the Constitutional
Court on appeal; the timing, scope, results and implications to the
Company of court-ordered consultation processes; the timing and
amount of foregone taxes and royalties; the timing and likelihood
of further workforce reductions; the timing and likelihood of the
road blockage being peacefully cleared and resolved; the timing and
amount of estimated future production, costs of production, capital
expenditures, exploration expenses, free cash flow, currency
exchange rate fluctuations, requirements for additional capital;
the future price of silver, gold, lead and zinc; government
regulation of mining operations 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,
sufficiency of capital resources and the possibility of considering
alternative financing arrangements to meet strategic needs, and
ability to achieve goals. 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, re-issuance of
licenses, permits and credentials affecting the operation of the
Company's mines, 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 or projects;
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 and
renew 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 fourth quarter of 2017 filed on SEDAR and with the
SEC on February 22, 2018 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.
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SOURCE Tahoe Resources Inc.