DENVER–(BUSINESS WIRE)–Gatos Silver, Inc. (NYSE/TSX: GATO) (“Gatos Silver” or the “Company”) is providing this bi-weekly non-compliance status report in accordance with National Policy 12-203 – Management of cease operations orders (“NP 12-203”). In its press release dated March 18, 2022 (the “Notice”), the Company announced the delay in filing its annual report on Form 10-K for the year ended December 31, 2021, which includes its audited consolidated financial statements as of and for the year ended December 31, 2021, together with the auditor’s report thereon and its notes, management’s discussion and analysis for the year ended December 31, 2021 in connection with audited annual financial statements, and the Chief Executive Officer and Chief Financial Officer Certificates of related officers with their annual filings by the March 31, 2022 filing deadline. In its May 13, 2022 press release, the Company announced the delay in filing your interim financial filings on Form 10-Q for the quarterly period ending March 31, 2022, which includes interim financial statements as of and for the quarterly period ended March 31, 2022, together with management’s discussion and analysis for the quarterly period ended March 31, 2022 relating to the interim financial statements, and certificates from the chief executive officer and the CFO related to your interim submissions before the submission deadline of May 16, 2022.
The Company believes that it will be able to file its annual report on Form 10-K for the year ended December 31, 2021 and its quarterly report on Form 10-Q for the quarter ended March 31, 2022 in the second half of 2022 Once its annual report has been filed on Form 10-K for the year ended December 31, 2021, the Company will hold its annual meeting of shareholders, which is expected to be held before the end of the fourth quarter 2022. The Company is also evaluating material weaknesses in its internal controls over financial reporting related to mineral reserve misstatements. The Company’s financial statements for the year ended December 31, 2021 and the quarter ended March 31, 2022 may be affected by the ongoing analysis of the aforementioned mineral reserve matters.
The Ontario Securities Commission granted a management cease and desist order on April 1, 2022 (the “original MCTO”) and the Ontario Securities Commission granted additional management cease and desist orders on April 12, 2022 and July 7, 2022 (the “Additional MCTOs” and together with the Original MCTO, the “MCTO”).
Pursuant to NP 12-203, the Company is required to file bi-weekly status reports in the form of additional press releases during the period from the Notice until the MCTO is revoked. The Company reports that since the Notice: (i) there have been no material changes to the information contained in the Notice that have not been disclosed in a bi-weekly non-compliance status report; (ii) there has been no failure by the Company to comply with its stated intentions with respect to satisfying the provisions of the alternative information guidelines under NP 12-203; and (iii) there has been no specified breach subsequent to the breach announced in the Notice.
About Silver Cats
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Gatos Silver is a dominant silver exploration, development and production company that discovered a new mineral district rich in silver and zinc in the southern state of Chihuahua, Mexico. As the 70% owner of the Los Gatos Joint Venture (“LGJV”), the Company is primarily focused on operating the mine and mineral processing plant at the LGJV’s Cerro Los Gatos deposit, which began production in 2019. More 85% of approximately The 103,087 hectare mineral rights package is yet to be drilled, representing a highly prospective and under-explored district with numerous epithermal silver, zinc and lead mineralized zones identified as priority targets.
East Press release may contain certain information that may constitute “forward-looking statements” and “forward-looking information” (collectively, “forward-looking statements”) within the meaning of US and Canadian securities laws. Forward-looking statements contained in this document include statements about the timing of the filing of the Company’s interim financial information on Form 10-Q and the Company’s annual report on Form 10-K, as well as the timing of of the annual meeting of shareholders. Although the Company has based these forward-looking statements on its current expectations about future events, the statements are not guarantees of the Company’s future performance and are subject to risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from the futures. results expressed or implied by such forward-looking statements. Such risks, uncertainties, assumptions and factors include, but are not limited to, the results of the Company’s ongoing analysis of the overstatement of its resources and reserves and the opportunity for an updated technical report. In addition, although the Company has attempted to identify factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actual actions, events or results not to be those anticipated, estimated. or intended. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Since forward-looking statements cannot be guaranteed to be accurate, as actual results and future events could differ materially from those anticipated in such statements, readers should not place undue reliance on forward-looking statements.
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