The $293,000 payment referred to in the article is not a recent payment. It was made prior to 2008. This is what the 2008 YE Financials had to say on the subject:
The Company is obliged to post reclamation bonds to provide for environmental remediation of its mine sites in Quebec at the end of their useful life. Subject to schedules provided by the Quebec Mining Act and related regulations, the Company is obliged to post bonds accumulating to 70% of the estimated future remediation costs. The Company is currently in negotiation with the Quebec Ministry of Natural Resources regarding the estimate of remediation costs and the required bond amount and timing. Significant factors at issue are the current status of the mine in temporary shutdown and the Company’s plans for re-start, the timing of the reclamation requirements for waste dumps of the open pit operation, and the specific requirements for topsoil cover on the waste dumps. Based upon the Company’s future remediation plan of $4.6 million, the Ministry of Natural Resources has estimated the total future remediation cost at $5,000,000. Given the present idle status of the mine, the Ministry has demanded posting of the entire 70% bond, or $3.5 million, at this time. According to the Company’s remediation estimate and plans for re-start of operations, the Company estimates that the amount of bonding currently required would be $1.5 million.
The Company has reclamation bonds in the amount of $493,000 (2007 - $493,000) of which $293,000 is being held for the Sigma-Lamaque Complex. The Company did not make any payment in 2008 due to placing the Sigma-Lamaque on care and maintenance and the Company’s working capital deficiency. An amount of $1.2 million has been provided in the Company’s overwritten cost estimate for the re-start of the Lamaque mine to correct this deficiency upon start-up. Using the Company’s estimate of bonding requirements, following is a schedule of the estimated future bonding requirements.
Annual Amount Cumulative Bond to be Posted
December 31, 2008 $ 293,000
Due 2009 $ 1,200,000 $ 1,493,000
Due 2010 $ - $ 1,493,000Due 2011 $ 60,800 $ 1,553,800
Due 2012 $ 178,600 $ 1,732,400
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Unfortunately the huge ego of our CEO has inflamed the situation. Instead of being concilliatory and speaking to the press about Century's plan to re-start the mine which will provide jobs and revenues for environmental clean-up, she comes across as being contemptous of French Quebec. As usual it's all about her when she complains about the treatment of the Company CEO - not about the company itself.
I don't think this issue is a threat to re-starting Lamaque. The Minister has threatened to "suspend" the operating license not revoke it. It may mean coming up with the balance of the $3.5 million though since that is the number in the press.
Here is a translated link to the article:
1 comment:
Thanks Carib.
It's hard to understand why Peggy isn't pushing the fact of the startup, but instead is trying to protect what's left of her own reputation.
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