Aurcana stocks slide after shuttering Texas mine, management takes pay cuts
TORONTO (miningweekly.com) – The TSX-V-listed shares of emerging silver producer Aurcana Corp this week fell nearly 38.46%, after the firm on Thursday announced it would place one of its two operating mines on care and maintenance.
The Vancouver-based firm said it had decided to shutter the Shafter mine, in Texas, citing the current economic conditions and low silver prices as the main factors influencing the board’s review of the development and mining operations.
It had notified employees on Wednesday of the pending action.
Aurcana said it was planning to start an exploration programme designed to test targets within Shafter's known mineralised areas in further detail, to help determine whether additional higher grades could be delineated. Aurcana geologists had identified areas of interest to justify such a programme.
"Aurcana's management and its board of directors are very disappointed that in spite of many of our employees' best efforts, the prevailing economic conditions, in particular low silver prices, have caused the company to suffer significant losses from the Shafter project's operations, resulting in an unsustainable drain on the company's treasury," Aurcana president and CEO Lenic Rodriguez said.
As a result shelving the project, the company would also not proceed with the planned updated resource estimate on the Shafter project.
Further, Aurcana's board of directors and senior management had agreed take a 20% pay cut as part of an on-going cost reduction programme.
Aurcana also operates the La Negra mine, in Mexico.
On Friday, Aurcana’s stock fell a further 11.11%, or C$0.08, to change hands at C$0.64 apiece – a far cry from the C$8-a-share levels seen at the start of the year.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation

















