GT Gold Corp. GTGDF

Capston places Minto Mine on care and mtce.

[MrBigger]

Another Canadian open pit copper mine bites the dust. Grade? 1.37%

VANCOUVER, Oct. 11, 2018 /CNW/ - Capstone Mining Corp. ("Capstone" or the "Company") (TSX: CS) and Pembridge Resources plc ("Pembridge") have elected to terminate the agreement for the sale of the Minto Mine ("Minto") (the "Transaction"). Due to unfavourable equity market conditions, Pembridge has been unsuccessful in completing the financing required to complete the Transaction. Additionally, to preserve Minto's value, Capstone is putting Minto on temporary care and maintenance, while continuing to explore value maximizing alternatives, including discussions with Pembridge and other potentially interested parties.

 

Mining operations will cease imminently with milling operations expected to be completed in the next few weeks once the current ore stockpile is processed. Costs to place the mine on care and maintenance are estimated to be approximately US$5 million in each of 2018 and 2019, with the ongoing costs expected to be under US$4 million annually thereafter for environmental compliance and other activities. Approximately 200 employees and contractors will be affected. Minto will retain a core team of employees to oversee the site and meet environmental monitoring and legal obligations during the care and maintenance phase.

"The decision to put Minto on care and maintenance while we seek alternatives is to preserve and maximize its value," said Darren Pylot, President and Chief Executive Officer of Capstone. "The team will ensure Minto can be restarted efficiently and safely once the copper and equity markets improve. Minto has been an important part of Capstone's history and we thank the team at Minto for their commitment and dedication."