A review of Prodeco’s operations determined that, in addition to a deteriorating market environment, there were increasing challenges with respect to obtaining several key approvals from government agencies and other key stakeholders. In Q2 2020, an application was therefore made to place Prodeco operations on extended care and maintenance until these conditions improve. In Q4, the application was rejected and it was subsequently decided to relinquish the mining licenses.
As a result of National Mining Agency’s (ANM) acceptance of Prodeco’s relinquishment, the Mining Contract was effectively terminated as of 6 September 2021 and the parties are currently undergoing the liquidation phase. |