North American Tungsten Announces a Series of Temporary Layoffs
VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 1, 2015) - North American Tungsten Corporation Ltd. (TSX VENTURE:NTC) ("NTC" or "the Company") announces a series of temporary layoffs of employees at the Company's Cantung mine over a six week period of time. Depressed tungsten prices have had a significant negative impact on operating results during calendar 2015. In addition, operating results have been negatively impacted by a number of operational issues over the last 30 days, the most significant being a power supply issue over the last five days which has resulted in the Company losing its ability to produce any product during that period of time. The Company believes power supply issues will be resolved this week.
The Company has implemented cost savings measures including the temporary layoff of approximately 80 employees, primarily in mining related activities. Given the standard rotational schedule, each employee will miss one work rotation of three weeks. The Company believes that it has sufficient accessible tungsten ore and ore stockpiles available to continue to operate the mill and ship product to its customers throughout the layoff period.
Management will continue to evaluate and implement measures to minimize capital expenditures and reduce expenses in the near term.
Kurt Heikkila, Chairman and CEO, stated, "While our operational issues are substantially behind us, the depressed tungsten prices continue to negatively impact our results. Tungsten prices have been volatile over the last two to three years and we fully expect them to increase from their current level over time, but in the meantime, we will continue to reduce our operating expenses at Cantung. We appreciate the significant contributions of our employees and understand the impact that this difficult decision has on our employees."
ON BEHALF OF THE BOARD OF DIRECTORS
Kurt E. Heikkila
Chairman & CEO
ABOUT NORTH AMERICAN TUNGSTEN CORPORATION LTD.
The Company is a publicly listed Tier 1 Junior Resource Company engaged primarily in the operation, development, and acquisition of tungsten and other related mineral properties in Canada. The Company's 100% owned Cantung mine and Mactung development project make it one of the few tungsten producers with a strategic asset in the western world. Mactung is one of the world's largest known undeveloped high grade tungsten-skarn deposits.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term as defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note: The Company relies upon litigation protection for "forward-looking" statements.
Safe Harbour Statement under the United States Private Securities Litigation Reform Act of 1995 and similar Canadian legislation: Except for the statements of historical fact contained herein, the information presented contains "Forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and similar Canadian legislation. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects," "budget," "scheduled," "estimates," "forecasts," "intends," "anticipates," "believes," or variation of such words and phrases that refer to certain actions, events or results to be taken, and other factors which may cause the actual results, performance or achievements of North American Tungsten Corporation Ltd. to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the actual results of reclamation activities, the estimation or realization of mineral reserves and resources, the timing and amount of estimated future production, costs of production, capital expenditures, future prices of commodities, possible variations in ore grade or recovery rates, efficacy and efficiency of milling process, failure of plant, equipment or processes to operate as anticipated, accidents, labour disputes and other risks in the mining industry. Although North American Tungsten Corporation Ltd. has attempted to identify important factors that could cause actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained herein and in North American Tungsten Corporation Ltd.'s other filing incorporated by reference.
Contact
INVESTOR CONTACT:
North American Tungsten Corporation Ltd.
+1.604.684.2992
+1.604.684.5300
info@natungsten.com