Endomines will start cooperation negotiations in order to evaluate the options; continued production or care and maintenance
Endomines AB’s fully owned subsidiary Endomines Oy has, in accordance with Finnish law, invited employee representatives to cooperation negotiations.
The start-up of negotiations will give the Company the flexibility to commence temporary or permanent lay-offs should conditions not improve during the coming months. The cooperation negotiations, relevant to all employees of Endomines Oy are, under Finnish law, a required first step prior to any temporary or permanent lay-offs.
During the co-operation negotiations, all alternatives for the Pampalo operations will be evaluated. These will include putting the mill and the mines in a care and maintenance mode. Negotiations with the lender Nordea bank and gold price hedge owners will also commence immediately.
Markus Ekberg, CEO of Endomines comments: “In order to keep all options open, management considers the negotiations necessary. This is regretful, as we recently have obtained very encouraging exploration results from the Pampalo deep extensions. However, the decreasing gold price in combination with the lower head grade during this year has pushed Pampalo operations cash flow negative and due to the uncertainty of the future gold price we now need to explore and mutually define the best possible option to secure a future positive cash flow from the recent discoveries”.
For further information, please contact:
Markus Ekberg
CEO of Endomines AB
tel. +358 40 706 48 50
Alternatively, visit the Company´s home page: www.endomines.com
Endomines AB discloses the information provided herein pursuant to the Swedish Securities Markets Act and/or the Swedish Financial Instruments Trading Act. The information was submitted for publication at 08:45 CEST on August 4, 2015.
About Endomines:
Endomines conducts exploration and mining business along the 40 kilometer long Karelian Gold Line. Through various regulatory approvals, Endomines controls the exploration rights to this entire area.
The Company’s first mine, Pampalo, started in February 2011. During 2014, Endomines initiated the production of ore from the mine in Rämepuro. All ore is processed in the centrally located mill at Pampalo.
The Company’s business practices and mining operations are based on sustainable principles and on minimizing the impact on the environment.
Endomines applies SveMin's & FinnMin's respective rules for reporting for public mining & exploration companies. The Company has chosen to report mineral resources and ore reserves according to the JORC-code, which is the internationally accepted Australasian code for reporting ore reserves and mineral resources.
Endomines vision is to participate in the future structural transformation and consolidation of the Nordic mining industry. The Company may therefore be involved in acquisitions of interesting deposits or companies, should such opportunities arise.
The shares of Endomines AB are quoted on NASDAQ Stockholm under ticker ENDO and on NASDAQ Helsinki under ticker ENDOM. The Liquidity Provider in both Stockholm and Helsinki is Erik Penser Bankaktiebolag.
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