🕐13.04.10 - 19:51 Uhr
PAN AMERICAN SILVERS HUARON MINE ON STRIKE
Pan american silvers huaron mine on strike
Vancouver, B.C.
- April 13, 2010 - Pan American Silver Corp.
("Pan
American" or the "Company"), (NASDAQ: PAAS; TSX: PAA) today announced
that an illegal strike declared by the union of mine workers has
resulted in a work stoppage at the Companys Huaron mine in Peru.
The
illegal strike started on Saturday April 10, 2010 and all production
activities at the mine have now been shut down.
The union is disputing the amount of the 2009 workers profit-sharing
payment.
Huarons profits in 2009 and the workers share were
negatively affected by the economic downturn in the first half of last
year.
In addition, there was a negative impact on profits due to the,
as yet unrecovered amounts owed to the Company by the Doe Run Peru
smelter which was forced to close in the first quarter of 2009 and has
yet to reopen.
Profit sharing concerns and related work stoppages are not isolated to
the Huaron mine and have arisen at a number of other operations in Peru
in recent weeks.
At this time, the Huaron mine is the only Pan American
mine affected by the strike.
The Company is continuing its efforts to
resolve the dispute with the Huaron union.
Depending on its duration, the strike could have a negative impact on
the annual production forecast for the Huaron mine.
Information Contact
Kettina Cordero
Coordinator, Investor Relations
(604) 684-1175
www.panamericansilver.com
This NEWS RELEASE contains "forward-looking STATEMENTS" within the
meaning of the UNITED STATES Private Securities Litigation reform act of
1995 and "fORWARD-LOOKING INFORMATION" WITHIN THE MEANING OF applicable
Canadian securities legislation.
Statements containing forward-looking
information express, as at the date of this NEWS RELEASE, the Companys
plans, estimates, forecasts, projections, expectations, or beliefs as to
future events or results.
Generally, forward-looking information can be
identified by the use of forward-looking terminology such as "plans",
"projects" or "projected", "expects" or "does not expect", "is
expected", "estimates", "forecasts", "scheduled", "intends",
"anticipates" or "does not anticipate", or "believes", or variations of
such words and phrases, or statements that certain actions, events or
results "may", "can", "could", "would", "might" or "will be taken",
"occur" or "be achieved".
SUCH forward-looking statements AND
information include, but are not limited to statements as to: the
anticipated duration or consequences of any work stoppages; and the
ability of pan american to resolve disputes with workers or to prevent
future disputes with workers.
These statements reflect the Companys current views with respect to
future events and are necessarily based upon a number of assumptions and
estimates that, while considered reasonable by the Company, are
inherently subject to significant business, economic, competitive,
political and social uncertainties and contingencies.
Many factors,
both known and unknown, could cause actual results, performance or
achievements to be materially different from the results, performance or
achievements that are or may be expressed or implied by such
forward-looking statements contained in this News Release and the
Company has made assumptions and estimates based on or related to many
of these factors.
Such factors include, without limitation:
fluctuations in spot and forward markets for silver, gold, base metals
and certain other commodities (such as natural gas, fuel oil and
electricity); fluctuations in currency markets (such as the Peruvian
sole, Mexican peso, Argentine peso and Bolivian boliviano versus the
U.S.
dollar); risks related to the technological and operational nature
of the Companys business; changes in national and local government,
legislation, taxation, controls or regulations and political or
economic developments in Canada, the United States, Mexico, Peru,
Argentina, Bolivia or other countries where the Company may carry on
business in the future; risks and hazards associated with the business
of mineral exploration, development and mining (including environmental
hazards, industrial accidents, unusual or unexpected geological or
structural formations, pressures, cave-ins and flooding); RISKS RELATING
TO THE CREDIT WORTHINESS OR FINANCIAL CONDITION OF SUPPLIERS, REFINERS
AND OTHER PARTIES WITH WHOM THE COMPANY DOES BUSINESS; inadequate
insurance, or inability to obtain insurance, to cover these risks and
hazards; employee relations; RELATIONSHIPS WITH AND CLAIMS BY LOCAL
COMMUNITIES AND INDIGENOUS POPULATIONS; availability and increasing
costs associated with mining inputs and labour; the speculative nature
of mineral exploration and development, including the risks of obtaining
necessary licenses and permits AND THE PRESENCE OF LAWS AND REGULATIONS
THAT MAY IMPOSE RESTRICTIONS ON MINING; diminishing quantities or grades
of mineral reserves as properties are mined; global financial
conditions; business opportunities that may be presented to, or pursued
by, the Company; the Companys ability to complete and successfully
integrate acquisitions AND TO MITIGATE OTHER BUSINESS COMBINATION RISKS;
challenges to, OR DIFFICULTY IN MAINTAINING, the Companys title to
properties AND CONTINUED OWNERSHIP THEREOF; the actual results of
current exploration activities, conclusions of economic evaluations, and
changes in project parameters to deal with unanticipated economic or
other factors; increased competition in the mining industry for
properties, equipment, qualified personnel, and their costs; and those
factors identified under the caption "Risks Related to Pan Americans
Business" in the Companys most recent Form 40F and Annual Information
Form filed with the United States Securities and Exchange Commission and
Canadian provincial securities regulatory authorities.
Investors are
cautioned against attributing undue certainty or reliance on
forward-looking statements.
Although the Company has attempted to
identify important factors that could cause actual results to differ
materially, there may be other factors that cause results not to be as
anticipated, estimated, described or intended.
The Company does not
intend, and does not assume any obligation, to update these
forward-looking statements or information to reflect changes in
assumptions or changes in circumstances or any other events affecting
such statements or information, other than as required by applicable
law.