Americas Gold and Silver Corporation (NYSEAMERICAN: USAS) signed an agreement with the Ministers of the Mexican economy to reopen the Cosala Operations, which was shut down for almost 17 months by an illegal obstacle.
The agreement states the right to possess the assets and the Ministry Of Labor’sLabor’s inspection, following which the mine can resume its progress safely. After the inspection, the Company will decide when to restart the everyday operations at the mill and mine.
About the Company
Americas Gold and Silver Corporation own numerous assets in North America, and they are one of the most prominent metals mining companies. Americas has the largest mines in the USA. They own the Relief Canyon mine in Nevada and Cosala Operations in Sinaloa, Mexico. They also own 60% of Idaho’sIdaho’s Galena Complex. In Sonora, they operate a San Felipe Development Project.
Production and Plans
Silver rates are high, so that the Company will target the higher grade silver ores in San Rafael’s upper zone. In addition, it will help them develop the silver-copper EC120 Project. The Company wants to increase the Silver production to 2.5 million ounces per annum if the Cosala Operation is restarted in these silver rich places. In the Idaho Galena Complex, where they recently succeeded in exploration, the Company targets to produce 5 million ounces per year, reaching the historical annual production.
President and CEO of Americas Gold and Silver Darren Blasutti said he is delighted with the agreement. It ensures the stability of operations for the Company in the long term. He expressed his gratitude for Mexican President, Ministers, Union Representatives, and his employees & Communities.
The “Forward-Looking Information”
The agreement includes some “Forward-Looking Information.” It contains Americas Gold and Silver targets, plans, expectations, assumptions. Cosala Operations reopening will anticipate the production rate for gold, silver, and other metals and the threat for minerals. This agreement is the solution for the illegal block, so they have to consider the timing left to increase the production.
Apart from this, the pandemic poses a significant threat to the Company in getting the suppliers, resources, and workforce.