Down 8% tonight on the Canadian TSX at the moment.
Operations at Didipio Underground suspended.
TSX Announcement - 25 July 2019.
Since 1 July 2019, local government units from the Province of Nueva Vizcaya have impeded access to and from the mine site in response to an unlawful directive from the Governor to 'restrain any operations' of the Company. The Company maintains the regulatory authority of the Didipio operation rests with the National Government, not the local government units.
Due to the depletion of consumable mining supplies, Didipio's underground mining has been suspended.
Processing is continuing along with other critical activities to ensure the safety of employees and protection of the environment.
As reported on 27 June 2019, the Company lodged its application for renewal of the Financial or Technical Assistance Agreement ("FTAA") with the Philippine Government in March 2018. On 20 June 2019, the Philippine Government's regulatory authority, the Mines and Geosciences Bureau, confirmed that the Didipio Mine is permitted to continue operations pending confirmation of the FTAA renewal.
Authority over the Didipio Mine rests with the National Government. The Local Government Code of 1991 (Republic Act No. 7160) does not grant the power or authority to the Provincial Governor or any local government officer to restrain any aspect of the Didipio operation.
The Company continues to work with the National Government to finalise the renewal of the FTAA and remain open to the opportunity to engage with the Provincial government and work together in the best interest of the local stakeholders.
The Company is committed to operating in accordance with the law and will always comply with its responsibilities under its contract with the Philippine Government.
Gw
OGC Price at posting:
$4.23 Sentiment: None Disclosure: Not Held
