Bear Creek Mining posts Q2 2025 Mercedes Mine production, Mexico
Bear Creek Mining Corp. [TSXV: BCM; OTCQX: BCEKF; BVL: BCM] reported production of 7,973 ounces of gold and 33,932 ounces of silver from the 100%-owned Mercedes Mine in Sonora, Mexico during the three months ended June 30, 2025.
Production and development results for the quarter ended June 30, 2025 included 91,941 tonnes of ore mined, 89,488 tonnes of ore processed, 2.88 g/t gold, 96% gold recovery and 1,828 metres of development.
Q2 2025 production at the Mercedes mine reflects continued underperformance during the quarter by a mining contractor engaged in late 2024 primarily to provide specialized equipment, personnel and mining services at the narrow-vein Marianas deposit. After repeated attempts to resolve the contractor’s underperformance, the company took decisive action and terminated the mining services agreement in May 2025. The company is currently implementing a comprehensive recovery plan for Mercedes’ 2025 production and is finalizing the transition of mining activities at the Marianas deposit to a replacement contractor to support enhanced efficiency and continuity. The Marianas deposit is expected to contribute the majority of Mercedes’ production in 2025.
As in the first quarter of the year, delayed production from Marianas was partially offset by accelerating pillar removal at San Martin, which deposit has now been fully mined. While gold grades and gold recovery improved quarter over quarter, the slow pace of mine development activity at Marianas, in combination with protractions in work on a new ventilation shaft resulting from poor rock conditions, led to a shortage of available production faces and negatively impacted development meters and both mined and processed tonnage.
The Strategic Review announced by the company on March 4, 2025 remains actively ongoing as of the date of this release. As previously stated, numerous options may be considered under the Strategic Review including recapitalization, a sale of all or some of the Company’s assets, a merger, joint venture, business combination or any combination thereof. There are no assurances or guarantees that the Strategic Review will result in a transaction or, if a transaction is undertaken, the terms or timing of such a transaction.
Pursuant to the secured promissory note (the 2025 Sandstorm Note) issued to a wholly owned subsidiary of Sandstorm Gold Ltd. on May 8, 2025, funds in the amount of US$2.4 million (the Draw) were drawn down by the company on July 14, 2025. The principal amount of the 2025 Sandstorm Note is a maximum of US$6.5 million, of which the company may draw down up to US$600,000 per month. An aggregate total of funds drawn to date is US$3.6 million and the remaining amount of up to US$2.9 million may be drawn down subject to prior approval by Sandstorm in its sole discretion. The Draw will be used for general working capital purposes.
The 2025 Sandstorm Note bears an interest rate of 7% per annum and will mature on September 22, 2028, with interest payments payable from June 2025 to November 2025 deferred until December 31, 2025.
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