Adventus and Salazar Place Ecuadorian Project Site Activities on Hold as a Result of Government's COVID-19 Public Health Decree
TORONTO, March 18, 2020 /CNW/ - Adventus Mining Corporation ("Adventus") (TSX-V: ADZN; OTCQX: ADVZF) and Salazar Resources Limited ("Salazar") (TSX-V: SRL) (collectively the "Partners") have temporarily suspended site activities at their Curipamba, Pijili and Santiago projects, (the "Projects") which is consistent with the Government of Ecuador's declaration of a state of emergency that is in effect from March 17, 2020 as a measure to prevent the spread of COVID-19. The Partners continue to be committed first and foremost to providing our people, communities, and stakeholders with safe and healthy work environments, which includes this decision to suspend all site activities on our Projects until further notice (Salazar has also suspended site activities at its other 100%-owned projects in Ecuador). Work at site will only restart once the COVID-19 situation has stabilized and it is deemed safe to do so by the national and regional authorities of Ecuador who are working closely with the World Health Organization.
In recent weeks as drilling and related activities had re-commenced at the Projects, the Partners have been actively implementing the government public health directives in the communities around the Projects, which included education and awareness campaigns to encourage measures that minimize the spread of COVID-19. As part of this work suspension, some environmental baseline studies have also been suspended, which includes the recently commenced hydro-geological drilling program. The suspension timing may inhibit the full implementation of the planned baseline field programs during the current rainy season at the Curipamba project, which may result in a minimum six-month delay to the original environmental and social impact assessment (ESIA) development timeline. The feasibility study earn-in requirement of October 5, 2021 on the El Domo deposit within the Curipamba Project will be delayed by the number of days that site activities are shutdown for starting from March 17, 2020.
If necessary, both Adventus and Salazar have strong treasuries and can self-fund an extended care and maintenance scenario on the Projects well into 2021.
Christian Kargl-Simard, President and CEO of Adventus, stated: "While it is unfortunate to place our project activities in Ecuador on hold, Adventus fully supports the government's proactive plan to protect its people from the COVID-19 pandemic. Our team together with our partner Salazar have worked hard to recently start three drill rigs at our Curipamba project and completed the groundwork to start exploration drilling at our Pijili and Santiago projects in the second quarter of 2020, but our excitement must now be balanced with patience as we tackle this greater public health challenge together. The economics of our El Domo deposit and exploration potential within Curipamba remain robust at spot pricing due to the high copper grades and significant gold credits. To our valued shareholders, we look forward to continuing our very exciting progress once we can restart site activities."
Fredy Salazar, President and CEO of Salazar states, "We are following public health guidelines carefully, and our top priority is the safety and well-being of our employees and the communities supporting the projects. We hope that by acting quickly now the Government of Ecuador will be able to shorten the time to lift the travel restrictions and allow economic activity to return to the country. We look forward to resumption of our work programs both with Adventus and at our 100% owned properties for the benefit of all our stakeholders."
Adventus Mining Corporation (ADZN.V) (ADVZF.OTCQX) is a well-financed exploration and project development company, focused in Ecuador. Its strategic shareholders include Altius Minerals Corporation, Greenstone Resources LP, Resource Capital Funds, Wheaton Precious Metals Corp., and the Nobis Group of Ecuador. Adventus is leading the exploration and engineering advancement of the Curipamba copper-gold project in Ecuador as part of an earn-in agreement to obtain a 75% ownership interest. In addition, Adventus is engaged in a country-wide exploration alliance with its partners in Ecuador, which has incorporated the Pijili and Santiago projects to date. Adventus also has an investment portfolio of equities in several junior exploration companies as well as exploration projects in Ireland with South32 as funding partner. Adventus is based in Toronto, Canada, and is listed on the TSX-V under the symbol ADZN and trades on the OTCQX under the symbol ADVZF.
Salazar Resources (SRL.V) (CCG.F) is a mineral resource company engaged in the exploration and development of mineral deposits in Ecuador and Colombia. The company has a proven Ecuadorian discovery team led by ex-head of Newmont Ecuador, Fredy Salazar; a team of 40 people including fifteen geologists; three drill rigs and an unrivalled Ecuadorian 'grass roots' network. The Salazar team has been involved with many discoveries in Ecuador, including Curipamba (Adventus Mining and Salazar Resources), Fruta Del Norte (Lundin Gold), the Mozo deposit, Cangrejos (Lumina Gold) Rio Blanco (Junefield Mineral Resources and Hunnan Gold), and Gaby (ENAMI).
Salazar Resources aspires to be Ecuador's leading project generator with the right partners at the right time making the company self-funding. Salazar Resources has an agreement with Adventus on the Curipamba VMS discovery, whereby Adventus can earn 75% of the project by funding exploration and development expenditures of US$25 million before October 2022. A feasibility study is expected to be completed during 2021, after which Adventus is required to fund 100% of the development and construction expenditures to commercial production. In addition, Salazar Resources has a funded exploration alliance with Adventus on two other projects, Pijili and Santiago, within a defined Area of Interest. Salazar Resources is advancing its 100% owned Rumiñahui, Macara, and Los Osos projects with the aim of making Ecuador's next significant copper-gold discovery.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
This press release contains "forward -looking information" within the meaning of applicable Canadian securities laws. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, identified by words or phrases such as "believes", "anticipates", "expects", "is expected", "scheduled", "estimates", "pending", "intends", "plans", "forecasts", "targets", or "hopes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "will", "should" "might", "will be taken", or "occur" and similar expressions) are not statements of historical fact and may be forward-looking statements.
Forward-looking information herein includes, but is not limited to, statements that address activities, events or developments that Adventus and Salazar expect or anticipate will or may occur in the future. Although Adventus and Salazar have attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, 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 information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Adventus and Salazar undertake to update any forward-looking information except in accordance with applicable securities laws.
SOURCE Adventus Mining Corporation