Silvercorp Metals Inc declines to match Guyana Goldfields’ “new offer”

Silvercorp Metals Inc has declined to match the “new offer” made to Guyana Goldfields by a foreign-based multinational mining company announced on June 3.
On Wednesday, Guyana Goldfields announced that it has received notice from Silvercorp Metals Inc that it will not exercise its right to match the offer.
Meanwhile, locally, the company on Tuesday commenced its second phase of termination of workers from the Region Seven (Cuyuni-Mazaruni) operation base.
The Canada-based company, 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. The downsizing is also linked to the company’s transition into underground mining.
Employees were informed of the second termination phase via a circular dated June 8. Penned by Director with responsibility for People and Culture, Emma Geist, instruction was given to those who would be laid off to collect their final papers before leaving the mine site.
Their final payments, the company noted, would be deposited before June 19.
The company has contended that these actions are in preparation for the rebound, when underground mining commences.
“Following our first phase of workforce reduction, this second phase also marks another day in the history of AGM Inc where this initiative will adversely impact many lives. While these are difficult times, we need to keep our heads up high, knowing that this will lead to a brighter future when the underground operations resume at some point in time,” the circular stated.
Added to this, the company sent out a statement on Tuesday in which it announced the cessation of all mining activities and the beginning of a planned care and maintenance period. This means that mining at Rory’s Knoll open pit and all satellite pits has ended.
“As per our previously announced plan, we will continue to process stockpiles until approximately the end of June, and thereafter the mine site will go into care and maintenance. The phased reduction of activity and employees is well underway, and is expected to be completed over the course of the coming weeks.
“Full-time security presence will be maintained at site, along with adequate crews to maintain the site, including environmental monitoring and compliance. Infrastructure such as camp, water supply, power supply and other systems will remain operational at a reduced level,” Goldfields said.

Layoffs
In a letter last month, Goldfields Chief Executive Officer Alan Pangbourne said a reduction in the workforce will take place at all levels, including both national and expatriate employees, as the company transitions its mining operation into a state of care and maintenance for an undetermined period. “The reason our timeline is undetermined is because it depends on multiple variable factors. These factors include financial conditions, COVID-19 issues, travel restrictions, and pending approval from Guyana’s EPA of our Revised Environmental and Social Impact Assessment Permit for underground mining,” he was quoted as saying. According to Pangbourne, these factors include hindrances to mining, the loss of income projected from ore shortage in the open pits, and an overall lack of funding to recommence operations in some areas. The pandemic had also forced the company to cease underground mining development.
No mention was made of exactly how many workers would be affected, but persons have posited that considering AGM employs over 500 personnel, the number of workers being let go would be significant.
This development caps a tumultuous year for the company, which has already made moves to sell its operations.