GUYANA Goldfields Inc., on Wednesday, announced that the company has processed the last batch of ore from stockpile and will continue to recover gold in circuit inventory over the next several days. “Thereafter, as previously announced, the mine site will go into a period of care and maintenance,” said a press release from the company.

The release said that gold production for the second quarter totaled 28,500 ounces, bringing total gold production for the first half of the year to 56,600 ounces. “This is above our guidance of 45,000 to 50,000 ounces for the first half of 2020 as disclosed on May 28, 2020. Our unaudited cash balance as at June 30, 2020 was US$28.8 million (inclusive of US$10 million restricted cash) with US$6.5 million in debt,” the company said in the release.

It noted that as part of the transaction announced with Zijin Mining Group Co., Ltd., a US$30 million secured loan facility was provided to the company. “The loan balance of US$6.5 million is as a result of the first advance under the Zijin Facility, following our payment to Silvercorp Metals Inc. of the C$9.0 termination fee on June 11, 2020 to terminate the company’s previous arrangement agreement with Silvercorp,” said the release.

ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS
As Guyana Goldfields had previously announced, on June 12, 2020, the company entered into an arrangement agreement with Zijin pursuant to which Zijin has agreed to acquire, through a wholly-owned subsidiary, all of the issued and outstanding shares of the company not already owned by Zijin for cash consideration of C$1.85 per share.