Quarterly Operations Update
2017 Second Quarter Report
Six months ended June 30, 2017.
(Expressed in U.S. Dollars, unless otherwise noted.)
Fruta del Norte Project
- The mine development contractor mobilized to the Fruta del Norte Project and construction of mine portals commenced in May 2017.
- Construction of the mine development support facilities commenced during the second quarter of 2017 in preparation for the development of the twin mine declines in the fourth quarter.
- On May 30, 2017, the Company announced the completion of a project update for the Fruta del Norte Project. The update was based on advancing the design and estimates from the Technical Report entitled "Fruta del Norte - NI 43-101 Technical Report on Feasibility Study" filed by the Company in June 2016. The updated results include a revised mine plan, updated capital and operating costs and a new execution plan based on a self-perform approach.
- On January 16, 2017, the Company obtained a $35 million short-term unsecured credit facility from an insider of the Company (the "Facility"). The outstanding balance of $28.6 million at June 30, 2017 was repaid in full on July 14, 2017.
- On May 30, 2017, the Company secured a project finance package of $400 to $450 million (the "Financing") with the Orion Mine Finance Group and Blackstone Tactical Opportunities (the "Lenders").
- Exploration activities have focused on advancing targets to the drill testing stage. The Puma, Barbasco and Fruta del Norte SW epithermal gold-silver targets within the Suarez pull-apart basin have been better defined; while outside of the basin, the Gata Salvaje, Las Nubes and El Quimi targets have been advanced.