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Great Panther’s mining operations stalled as Mexican lockdown extends

Mining
TSX:GPR
24 April 2020 11:26 (EDT)

Great Panther Mining Limited (TSX:GPR) is continuing to halt its Mexican operations, after the government extended a country-wide COVID-19 lockdown.

The mining company originally suspended operations on April 2, when the government’s initial lockdown came into effect. The new suspension is expected to last until May 30 but could once again be pushed back if case numbers continue to rise.

The suspension has already impacted the company’s Guanajuato Mine Complex, which is located close to Mexico City, as well as its Topia Mine in the north.

Operations were de-escalated earlier this month and both sites are currently running with minimal staff.

However, the company was quick to point out that its Mexican operations account for less than 2 per cent of its overall revenue. The majority of its revenue comes from the Tucano Mine in Brazil, which remains operational thus far.

The government made this announcement as confirmed cases of novel coronavirus continue to rise in the region.

At the last count, the country has more than 11,600 cases, with more than two thousand confirmed in the last two days. The majority of the overall cases have been reported in Mexico City, with more rural communities appearing less affected.

The Mexican Government did say that potential concession could be made for business operating in areas with low case numbers. However, any potential restart wouldn’t commence until May 18 at the earliest.

If such concessions are made, Great Panther will apply to restart but otherwise remains committed to meeting government guidelines.

Great Panther Mining Limited (GPR) is down 4.29 per cent, with shares trading for C$0.67 at 10:07am EST.

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