Ascot places Premier on care-and-maintenance, launches strategic review
Canadian gold developer Ascot Resources said on Wednesday it would place its Premier gold project (PGP) in British Columbia on care and maintenance after failing to reach a satisfactory cost agreement with its mining contractor, and that it had launched a strategic review to explore options for advancing the asset.
The company cited unsuccessful negotiations with Procon Mining over proposed price increases and delays in finding an alternative contractor, which have disrupted plans to mobilise a mining fleet to the Big Missouri deposit, which is key to restarting operations.
As a result, Ascot said the project’s mill would not be operational by early August as previously planned.
“In the five months since the new management team took over, we have made significant progress,” CEO Jim Currie said in a statement. “However, like many mine construction projects, operational challenges continue to surface, which in turn take time and capital to address. Over the next couple of months, we will be assessing our options to help us access the capital needed to successfully bring the project into sustainable production.”
To lead the strategic review process, the board has formed a special committee and appointed financial advisers to explore potential alternatives. The company noted there was no certainty that the review would result in a transaction.
PGP is located on Nisga'a Nation Treaty Lands in the Golden Triangle region of north-western British Columbia.
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