Great Panther Seeks Bankruptcy Protection

The Tucano mill processed 3.4 million mt of ore to produce more than 75,900 oz of gold in 2021.
Vancouver-based Great Panther Mining Ltd. filed a notice of intention (NOI) to make a proposal under Canada’s Bankruptcy and Insolvency Act, which will provide creditor protection while the company seeks to restructure its affairs.

Great Panther owns the Tucano gold mine in Brazil. The company recently completed the sale of several Mexican mines and prospects to Guanajuato Silver Co. Ltd. After reviewing its cash position, forecasted revenue and expenses, and scheduled debt payments, the company said it will likely default on several material debtor agreements.

The Tucano gold mine will be placed on temporary care and maintenance while Great Panther explores its options. The company said it intends to continue to process stockpiles during the care-and-maintenance period and work with its suppliers to maximize stakeholder value.

During August, Great Panther said it was transitioning between mining contractors at the Tucano mine. It also reported inflationary pressures for diesel fuel and other consumables as well as accelerated capital spending related to the Tucano tailings storage facility (TSF). Higher-than-normal precipitation during the past two years forced the company to fast track the expansion of the Tucano TSF, which brought forward $3.5 million planned for 2023, as well as a $2.3 million investment for evaporators to manage water levels in the TSFs.

As featured in Womp 2022 Vol 10 -