SAN FRANCISCO, Jan. 31, 2022 /PRNewswire/ -- Hagens Berman notifies Gatos Silver, Inc. (NYSE: GATO) investors that the Firm is investigating possible securities law violations by Gatos, senior management, and others. The firm urges investors with significant losses to submit your losses now.
Visit:www.hbsslaw.com/investor-fraud/GATO
Contact An Attorney Now:GATO@hbsslaw.com
844-916-0895
Gatos Silver, Inc. (GATO) Investigation:
The investigation focuses on statements concerning Gatos' Cerro Los Gatos ("CLG") mine located in Chihuahua, Mexico.
Specifically, as recently as July 15, 2021, Gatos affirmed the Company's estimates in its July 1, 2020 Technical Report ("2020 Technical Report") that the CLG deposit "contains approximately 9.6 million diluted tonnes of proven and probable mineral reserves." This and other statements allowed Company insiders to sell 11.4 million shares to the investing public at $14 per share for total proceeds of about $159 million.
But on Jan. 25, 2022, Gatos disclosed that during a resource and reserve update process, which included a detailed reconciliation of recent production performance, the Company concluded that there were errors in the 2020 Technical Report, as well as indications that there is an overestimation in the existing resource model.
As a result, the Company estimated a potential reduction of the metal content of CLG mineral reserve ranging from 30% to 50% of the metal content and warned that the mineral resource and reserve estimates in the 2020 Technical Report should not be relied upon
This revelation drove the price of Gatos shares as much as 70% lower on Jan. 26, 2022.
"We're focused on investors' losses and when Gatos knew of the 2020 Technical Report flaws," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Gatos and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Gatos should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email GATO@hbsslaw.com.
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Contact:
Reed Kathrein, 844-916-0895
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SOURCE Hagens Berman Sobol Shapiro LLP
