Guyana Goldfields produces 56,000 ounces of gold for 2020

…processes last batch of ore as company prepares for exit

As Guyana Goldfields wraps up its operations in keeping with its decision to sell its operations to Chinese mining company Zijin Mining Group, the company announced on Wednesday that it had processed its last batch of ore from stockpile, and that the site will soon go into the care and maintenance period.
According to a statement the company sent out, Aurora will continue to recover gold in circuit inventory over the next few days. The company also noted that, based on its data, it produced almost 60,000 ounces of gold for the first half of the year.
“Gold production for the second quarter totalled 28,500 ounces, bringing total gold production for the first half of the year to 56,600 ounces. This is above our guidance of 45,000 to 50,000 ounces for the first half of 2020, as disclosed on May 28, 2020. Our unaudited cash balance as at June 30, 2020 was US$28.8 million (inclusive of US$10 million restricted cash) with US$6.5 million in debt,” the company said.
It was pointed out that as part of the transaction announced with Zijin Mining Group Co, Ltd, a US$30 million secured loan facility was provided to the company. The loan balance of US$6.5 million is as a result of the first advance under the Zijin Facility.
According to Goldfields, it has paid the termination fee to Silvercorp Metals Inc., enabling it to cut ties with the Canadian company, which had agreed to buy Goldfields before Zijin entered the picture and made a better offer. The company also made known that its Annual and Special Meeting of Shareholders will feature proxy voting. And according to it, shareholders are urged to vote for the special resolution to approve the selling of Guyana Goldfields to the Chinese company.
“The management information circular and related materials in connection with the upcoming annual general and special meeting of shareholders, at which, among other matters, the Arrangement will be voted on by shareholders, were mailed last week to shareholders of the Company on record as at June 23, 2020.
The Canada-based Guyana Goldfields, which operates local subsidiary Aurora Gold Mine (AGM), had moved to downsize its operations since May, after facing constraints from the COVID-19 pandemic coupled with other financial woes. It was also linked to the company’s transition into underground mining. In the meantime, hundreds of local workers have been laid off by Goldfields in the process.
Zijin Mining Group Co, which specialises in gold, copper, zinc, and other mineral resource exploration and development, bettered the purchasing price and conditions that were made by the Canadian company Silvercorp Metals Inc.