PRESS RELEASE: Under the agreement between Beadell, MACA and their respective Brazilian subsidiaries, MACA will cease mining services immediately. Mining at the Tucano gold mine in Brazil will be conducted by a combination of owner mining and the existing Brazilian mining contractor on site. It is anticipated that a new life of mine mining contract will be executed with the Brazilian mining contractor shortly and the mine will transition to that single contractor.
Beadell Resources stated that moving to a single experienced Brazilian mining contractor on site will lead to operational efficiencies and reduced mining costs at Tucano. This move will allow the company to enjoy the benefits of a mature and comprehensive supply chain, significant in country fleet capability and experienced Brazilian management.
Upon the anticipated closing of Tranche 2 of the financing announced on May 7, Beadell will be able to complete the plant upgrade, optimise the mine plan and start producing positive cashflow from Tucano. The company expects that this, coupled with a renewed exploration team focusing on the vast underexplored greenstone belt that Beadell has under licence, will lead to positive return for all stakeholders in the future.
Simon Jackson, CEO and managing director of Beadell Resources, commented: "It is a significant step forward for Tucano as we continue on our cost reduction and operational efficiency turnaround plan. A large single Brazilian based mining contractor is the most sensible and practical way forward for the mine. We appreciate MACA's willingness to work with us to come to a resolution on the best path forward for Beadell and we wish them the best in their future projects."