Gatos Silver provides bi-weekly status report
DENVER–(BUSINESS WIRE)–Gatos Silver, Inc. (NYSE/TSX: GATO) (“Gatos Silver” or the “Company”) provides this bi-weekly default status report pursuant to National Policy 12-203 – Management cease trade orders (“NP 12-203”). In its press release dated March 18, 2022 (the “Notice”), the Company announced the postponement of the filing of its annual report on Form 10-K for the year ended December 31, 2021, which includes its consolidated financial statements audited at and for the year ended December 31, 2021, together with the auditor’s report thereon and the notes thereto, its management report for the year ended December 31, 2021 on the annual audited financial statements , and Chief Executive Officer and Chief Financial Officer Certificates relating to its annual filings by the March 31, 2022 filing deadline.
The Company announces today that it intends to delay the filing of its interim financial documents on Form 10-Q for the quarterly period ended March 31, 2022, which includes interim financial statements as of and for the quarterly period ended March 31, 2022, as well as with its MD&A for the quarterly period ended March 31, 2022 with respect to interim financial statements, and the CEO and CFO certifications with respect to its interim filings by the filing deadline of May 16, 2022. The Company estimates that it will be able to file its quarterly report on Form 10-Q for the quarter ended March 31, 2022 during the second half of 2022. The Company is also evaluating the material weaknesses in its internal controls over financial reporting related to the mineral reserve reporting errors. The Company’s financial statements for the year ended December 31, 2021 and the three months ended March 31, 2022 may be affected by the ongoing analysis of the aforementioned mineral reserve issues.
A management cease trade order was granted by the Ontario Securities Commission on April 1, 2022 (the “Original OCTM”) and the Ontario Securities Commission granted an order of the Additional Management Cease Trade Order on April 12, 2022 (the “Additional OCTM” and, together with the Original MCTO, the “MCTO”).
In accordance with NP 12-203, the Company must file status reports every two weeks in the form of supplemental press releases during the period from the notice until the revocation of the OCTM. The Company reports that since the Notice: (i) there have been no material changes to the information contained in the Notice that have not been disclosed in a bi-weekly default status report; (ii) there has been no failure by the Company to carry out its stated intentions with respect to satisfying the provisions of the Alternative Disclosure Guidelines under NP 12-203; and (iii) there has been no specified defect after the defect announced in the Notice.
About Gatos Silver
Gatos Silver is a silver-focused exploration, development and production company that has discovered a new silver and zinc-rich mineral district in the southern state of Chihuahua, Mexico. As a 70% owner of the Los Gatos joint venture (“LGJV”), the Company is primarily focused on the operation of the mine and ore processing plant at LGJV’s Cerro Los Gatos deposit, which has began production in 2019. Over 85% of the approximately 103,087 hectare mineral rights package has yet to be drilled, representing a highly prospective and underexplored district with numerous epithermal silver-mineralized zones. zinc-lead identified as priority targets.
This press release may contain certain information that may constitute “forward-looking statements” and “forward-looking information” (collectively, “forward-looking statements”) within the meaning of United States and Canadian securities laws. Forward-looking statements contained herein include statements regarding the timing of filing of the company’s interim financial information on Form 10-Q and the company’s annual report on Form 10-K. Although the Company has based these forward-looking statements on its current expectations regarding future events, the statements are not guarantees of the future performance of the Company and are subject to risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from future results. results expressed or implied by these forward-looking statements. These risks, uncertainties, assumptions and factors include, among others, the results of the Company’s ongoing analysis of the overstatement of its resources and reserves and the timing of an updated technical report. Additionally, although the Company has attempted to identify factors that could cause actual actions, events or results to differ materially from those described in the forward-looking statements, there may be other factors that cause the actions, events or results are not those anticipated, estimated or intended. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. As there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements, readers should not place undue reliance on forward-looking statements.