Minto convinces YESAB to reduce security demands.Yukon Government Security Update On January 4 th, 2022 the Yukon Government determined that the security for the Minto Mine site should be increased from $72 million to $104 million. Until Minto Metals is able to furnish the increased security the Yukon Government placed the Minto Mine under restricted operating conditions related to water management activities on site and provided Minto additional time, most recently until September 1 st, 2022, to furnish the increased security.
On August 19, 2022 the Company received a letter from the Yukon Government revising the required security due by September 1, 2022 to $93 million. This reduction is based on reclamation work already completed on-site as well as the removal of security for two new mining areas which have not been started yet.
Minto has been in ongoing discussions with the Selkirk First Nation and the Yukon Government to finalize a solution that is acceptable to all parties. Various solutions are being discussed while the Company continues carrying out progressive reclamation activities thereby potentially decreasing the required security increase. Further updates will be provided in the coming weeks as the Company works with the Selkirk First Nation and the Yukon Government. But if Minto does not furnish the required $93 million security by September 1, 2022, and/or the Yukon Government does not provide an extension, Minto will be out of compliance with its Quartz Mining License. As a result of that non-compliance, the Yukon Government may direct Minto to take certain actions including cessation of mining and milling activities until such time as the Company furnishes the required security in full. Although the Company currently believes it will be able to secure the required $93 million security by the September 1, 2022 deadline, there can be no assurance it will be able to do so by such time, or at all.