Monday July 13 2015 - News Release Monday July 13 2015 - News Release
Ms. Tamara Brown reports
PRIMERO ADVISES OF DELAY IN SILVER REVENUE DUE TO DELAY IN MEXICAN EXPORTS
As a result of a delay in exports from Primero Mining Corp.'s San Dimas mine in Mexico, its subsidiary, Primero Empresa Minera SA de CV, has been delayed in selling silver. As a result, approximately 880,000 ounces of silver were not sold during the second quarter of 2015, representing approximately $6.5-million in delayed revenue.
Primero Mining's import and export licences were suspended in May, 2015, by the Mexican customs authorities due to a discrepancy over the company's address related to its corporate office relocation from Mexico City to Durango, Mexico. Primero Mining has since clarified the discrepancy and has been meeting with customs officials, but has regrettably not been reinstated to the customs registry. Primero Mining is able to source necessary supplies locally so that the San Dimas mine and mill continue to operate uninterrupted. Primero Mining is currently refining its gold-silver dore in Mexico and selling its gold in the normal course. However, the company is unable to deliver silver under its silver purchase agreement with Silver Wheaton Corp., which requires delivery outside of Mexico. As a result, approximately 630,000 ounces of silver were not delivered under the silver purchase agreement in the second quarter, and Primero Mining did not get the benefit of spot sales on approximately 250,000 ounces. Senior customs officials have confirmed that the company's registry status is being reviewed, but the company has not been given a definitive date for reinstatement of the licences. If the company's export licence is not reinstated before Aug. 5, 2015, the date that its silver purchase agreement annual threshold is reset, then the company may not realize spot silver sales in the third quarter of 2015 but could then expect to reach the annual threshold earlier in 2016.
We seek Safe Harbor.