In a move towards reopening Cosalá Operations shut for more than 17 months due to illegal blockade, Americas Gold and Silver Corporation (NYSEAMERICAN:USAS) has signed an agreement with Mexican Ministries of Economy, Interior and Labour.
This agreement will look at right to property possession with joint inspection coordinated by the Ministry of Laborfor mine operations restart in a sustainable way. After inspection, the firm will give an update on a schedule for returning to normalised operations.
The production will result in spike in silver prices allowing company to aim at higher-grade silver ores in Upper Zone of San Rafael. This can lead to development of silver-copper EC120 project, which can augment silver production by more than 2.5 million ounces of silver per annum.
Additionally, exploration success in Idaho’s Galena Complex in Idaho reaching annual production levels of about 5 million ounces per year will translate to large hike in silver production in some years.
President & CEO Darren Blasutti expressed content on signing agreement after extensive deliberations with senior Mexican ministers as well as President of Mexico. Blasutti said that this would give long-term stability of operations. The firm is keen to ramp-up production to benefit from the strong zinc, silver and lead prices.
Market Reaction:
As of 1:04, USAS stock fell 1.60% at $1.55 with more than 1.08 million shares, compared to its average volume of 1.37 million shares. The stock had moved within a range of $1.5400 – 1.6500 after opening the trade at $1.63. Over the past 52-week, the stock has been trading within a range of $1.4200 – 3.9000.
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