Great Panther to put Brazilian gold mine on care and maintenance

Canada junior Great Panther Mining will put its Tucano gold operation in Brazil in temporary care and maintenance after it requested bankruptcy protection from creditors. 

"The decision to seek creditor protection was taken after careful consideration of available alternatives, the company's cash position, forecasted revenue and expenses (including in relation to its subsidiaries), and scheduled debt payments," Great Panther said in a statement. 

"The company expects that it is likely to default on several material debtor agreements due to liquidity constraints stemming from the operational challenges previously disclosed, inflationary pressures significantly impacting costs, unforeseen but necessary capital expenditures, and contractor mobilization delays because of equipment availability issues," it added. 

Great Panther has terminated several material contracts with suppliers but said it intends to continue to process stockpiles during the care and maintenance period and work with its suppliers to maximize stakeholder value.

Tucano mine is located in Amapá state in northern Brazil. 

Alvarez & Marsal Canada was appointed to monitor the company's operations and restructuring.

In a separate statement, the company said it filed a judicial reorganization proceeding – similar to bankruptcy protection – in a Rio de Janeiro court to attempt to restructure its operations and liabilities and address its financial distress.