Calibre comments on U.S. sanctions on Nicaragua
Calibre Mining Corp. [CXB-TSXV, CXBMF-OTC] shares fell in heavy trading Tuesday after the company said it is analyzing the recent sanctions imposed by the U.S. Treasury Department on the Nicaragua Directorate of Mines.
The company said it is proactively reviewing the recent sanctions and has reached out to the U.S. Treasury Department to ensure its full compliance with these provisions, the company said in a press release.
“Calibre reaffirms its commitment to continue complying with all relevant international laws and restrictions,’’ the company said.
On Tuesday, Calibre shares plunged 29.5% or 23 cents to 55 cents on volume of 9.16 million. The shares are currently trading in a 52-week range of $1.72 and 68 cents.
Calibre issued the statement after the U.S. imposed sanctions this week on a Nicaraguan state gold mining operation, saying it finances the regime of Nicaraguan President Daniel Ortega and his wife Vice-President Rosario Murillo.
The sanctions focused on the Nicaraguan General Directorate of Mines as well as Lenin Cerna, a close advisor and former security chief to Ortega.
The U.S. Treasury said the directorate manages most mining across the country, and that proceeds from gold mining benefit Ortega’s regime directly.
Calibre is a multi-asset, multi-jurisdictional gold producer with operations in Washington State, Nevada and Nicaragua.
In October, 2019, Calibre acquired B2Gold Corp.’s [BTO-TSX, BTG-NYSE] interest in the El Limon and La Libertad gold mines, the Pavon gold project and additional mineral concessions in Nicaragua for US$100 million.
Prior to the closure of that deal, Calibre had a 100% interest in over 413 square kilometres of mineral concessions in the Mining Triangle of Northeast Nicaragua, including the Primavera Gold-Copper project and Santa Maria Gold Project.
Additionally, the company has optioned to Iamgold Corp [IMG-TSX, IAG-NYSE] (176 square kilometres) and Centerra Gold Inc. [CG-TSX, CAGDF-OTC] (353 square kilometres) concessions covering an aggregate area of 429 square kilometres and is a party to a joint venture on the 33.6 square kilometre Rosita D. gold-copper-silver project with Rosita Mining Corp.
Major shareholders in Calibre include B2Gold, with 30%, mining financier Pierre Lassonde, and management.
During 2021, Calibre initiated mining at Pavon Norte, the first of three known gold deposits hosting mineral resources in the district. Calibre is advancing development at Pavon Central with the aim of starting production in the first quarter of 2023.
Combined 2021 end-of-year mineral reserves for Pavon Norte and Central open-pit mines stood at 165,000 ounces at an average grade of 5.07 g/t. Pavon Central hosts an average reserve grade of 6.49 g/t gold, notably higher than the average 3.28 g/t gold grade a Pavon Norte. As a result, Pavon Central is expected to contribute to the company’s 2023 and 2024 production growth.