PERTH, AUSTRALIA--(Marketwired - Jan. 20, 2015) - Mawson West Limited (TSX:MWE) ("Mawson West" or "the Company") announces that following the successful completion of the initial components of the Company's US$33.4 million financing package with Galena Private Equity Resources Fund LP ("Galena"), the Company has concluded a review of its Dikulushi and Kapulo operations in the Democratic Republic of Congo ("DRC").
As a result of this review, a decision has been made to place the Dikulushi mine on care and maintenance. Commodity price deterioration, combined with lower than expected copper and silver production at Dikulushi has driven this decision. A detailed mining study has commenced to determine the appropriate mining strategy, economics and structure to assess future operation opportunities.
During 2014, the Dikulushi mine produced approximately 3,000 tonnes of copper in concentrate - well below original expectations. Performance at Dikulushi has continued to be affected by mining dilution resulting in lower than expected mined ore grades.
In addition to the decision to place the Dikulushi mine on care and maintenance, the Board of Directors has also decided to reduce the number of people currently working at the Kapulo project. As part of a wider corporate review, the Company is also considering its corporate structure and associated costs.
The Company has reached this decision to place the Dikulushi mine on care and maintenance in consultation with Galena and Trafigura Pte Ltd., lenders to the Company. The placement of the Dikulushi mine on care and maintenance is not expected to affect the previously announced financing and debt restructuring package.
Mawson West will hold an extraordinary general meeting of shareholders to approve components of the Galena financing package on 25 February, 2015 in Perth, Western Australia. Additional information on this meeting will be provided to shareholders shortly.