Endomines commences employee co-operation negotiations at the Pampalo mine
Endomines AB, Stock Exchange Release 18 April 2018 at 11:15 CEST
Endomines Oy commences co-operation negotiations with its whole personnel at the Pampalo mine in Ilomantsi, Finland, on reduction of workforce. The negotiations concern approximately 40 employees and according to initial estimates may at most lead to the lay-off for more than 90 days and/or termination of 32 employees on productional or economic grounds.
Continuation of gold production at the Pampalo mine after September 2018 will require a sizeable investment in the deep extension of the mine. According to the Company’s estimates, the investment would not be profitable at the prevailing market price of gold. Therefore, Endomines considers postponing the investment until a later time and temporarily suspending production. During the current year, the Company is planning to invest approximately 2 million euro in exploration along the Karelian Gold Line in Eastern Finland with the target of enabling profitable gold production in Ilomantsi in the longer term.
"It is very regrettable that we have to commence co-operation negotiations with our personnel. Continuation of production in Pampalo after the coming September requires a sizeable investment in the deep extension of the mine, but the current gold price does not support the investment decision. We therefore consider postponing the investment and temporarily suspending gold production in Pampalo. With the co-operation negotiations we will, together with our personnel, seek solutions to this situation", says Saila Miettinen-Lähde, CEO of Endomines.
Saila Miettinen-Lähde, CEO, +358 40 548 36 95, saila.miettinen-lahde(at)endomines.com
This information is information that Endomines AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 11:15 CEST on 18 April 2018.
Endomines is a mining and exploration company with its primary focus on gold. The Company operates a gold mine in Pampalo, has exploration activities along the Karelian Gold Line in Eastern Finland and develops mining operations in Idaho, USA. Endomines aims to improve its long-term growth prospects by increasing its exploration activities and through acquisitions. Endomines aims to acquire deposits that are situated in stable jurisdictions and can be brought to production rapidly with limited investments.
The shares trade on Nasdaq Stockholm (ENDO) and Nasdaq Helsinki (ENDOM).