Primero Announces Receipt of Mexican Import and Export Permits; Inventoried Silver Being Sold Immediately
TORONTO, ON--(Marketwired - August 06, 2015) - Primero Mining Corp. ("Primero" or the "Company") (TSX: P) (NYSE: PPP) is pleased to announce that it has been reinstated to the import and export registries in Mexico and that normal course imports and exports have resumed for its San Dimas mine located in Durango State, Mexico.
As of yesterday evening Primero's wholly owned subsidiary Primero Empresa Minera S.A. de C.V. ("PEM") has been reinstated to the Mexican customs registry, and the Company has commenced selling all inventoried silver. This includes approximately 2.0 million ounces, comprised of 1.2 million ounces to be delivered under its silver purchase agreement with Silver Wheaton Corp. and 0.8 million ounces to be sold into the spot market. The proceeds from the silver sales will be recorded as third quarter revenue for the Company.
PEM's import and export licences were suspended by the Mexican customs authorities in May 2015 due to a discrepancy over the Company's address related to its corporate office relocation from Mexico City to Durango, Mexico. The Company was able to source necessary supplies locally so that the San Dimas mine and mill continued to operate uninterrupted.
About Primero
Primero Mining Corp. is a Canadian-based precious metals producer that owns 100% of the San Dimas gold-silver mine and the Cerro del Gallo gold-silver-copper development project in Mexico and 100% of the Black Fox mine and adjoining properties in the Township of Black River Matheson near Timmins, Ontario, Canada. Primero offers immediate exposure to un-hedged, below average cash cost gold production with a substantial resource base in politically stable jurisdictions. The Company is focused on becoming a leading intermediate gold producer by building a portfolio of high quality, low cost precious metals assets in the Americas.
Primero's website is www.primeromining.com.
CAUTIONARY NOTE ON FORWARD-LOOKING INFORMATION
This news release contains "forward-looking statements", within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation, concerning the business and operations of Primero Mining Corp. and its consolidated subsidiaries (collectively, "Primero" or the "Company"). All statements, other than statements of historical fact, are forward-looking statements. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects", "intends", "anticipates", "to be", "will be" or variations of such words and phrases Forward-looking information is also identifiable in statements of currently occurring matters which will continue in future or other statements that may be stated in the present tense and are not historical facts.
Forward-looking statements in this news release include, but are not limited to, statements regarding the reinstatement of the Company's import and export licences, the level of silver sales at spot prices; the amount of spot silver sales in third quarter 2015, the ability of the Company to source supplies locally, the ability of the Company to continue to operate the San Dimas mine and mill uninterrupted, the ability of the Company to deliver silver under its silver purchase agreement with Silver Wheaton Corp., and the Company's intentions to become an intermediate gold producer.
The assumptions made by the Company in preparing the forward-looking information contained in this news release, which may prove to be incorrect, include, but are not limited to: the expectations and beliefs of management; the specific assumptions set forth above in this news release; the expectations regarding the Company's export/import permit, that there are no significant disruptions affecting operations; that development and expansion projects proceed on a basis consistent with current expectations and the Company does not change its development and exploration plans; that the exchange rate between the Canadian dollar, Mexican peso and the United States dollar remain consistent with current levels; that prices for gold and silver remain consistent with the Company's expectations; that production meets expectations; that the Company will sell some of its silver production at spot prices in 2015; that there are no material variations in the current tax and regulatory environment; that the Company will receive required permits and access to surface rights; that the Company can access financing, appropriate equipment and sufficient labour; that the political environment within Mexico will continue to support the development of environmentally safe mining projects.
Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results, performance or achievements of Primero to be materially different from those expressed or implied by such forward-looking statements, including: the Company may not be able to continue to operate the San Dimas mine and mill uninterrupted, the Company may not be able to sell silver under its silver purchase agreement, the Company may not be able to expand production, or realize anticipated production levels; the Company may not be able to complete development projects or realize anticipated production levels, the Company may be required to change its development and exploration plans with a negative impact on production; the exchange rate between the Canadian dollar, the Mexican peso and the United States dollar may change with an adverse impact on the Company's financial results; the optimization and expansion initiatives may not provide the benefits anticipated; the Company may not be able to become an intermediate gold producer by building a portfolio of high quality, low cost precious metals assets in the Americas. Certain of these factors are discussed in greater detail in Primero's registration statement on Form 40-F on file with the U.S. Securities and Exchange Commission, and its most recent Annual Information Form on file with the Canadian provincial securities regulatory authorities and available at www.sedar.com.
Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. In addition, although Primero has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Forward-looking statements are made as of the date hereof and accordingly are subject to change after such date. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans and allowing investors and others to get a better understanding of our operating environment. Primero does not undertake to update any forward-looking statements that are included in this document, except in accordance with applicable securities laws.
Attachment Available: http://www.marketwire.com/library/MwGo/2015/8/6/11G049872/PR16-15_Export_Permit_Received_Final-1051007746687.pdf
Contact
For further information, please contact:
Tamara Brown
VP, Investor Relations
Tel: (416) 814 3168
tbrown@primeromining.com