VANCOUVER, BC, Nov. 4, 2022
/PRNewswire/ - Great Panther Mining Limited (OTCPK: GPLDK) ("Great
Panther" or the "Company") announces that the Supreme Court of
British Columbia (the "Court"), on
application of the Company, has granted an extension of the stay of
proceedings under the Companies' Creditors Arrangement
Act ("CCAA") to December 16,
2022, and has approved the previously announced Share
Purchase Agreement (the "SPA") between Great Panther and Newrange
Gold Corp. ("Newrange"). The Company also announces a senior
management change.
On October 4, 2022, the Supreme
Court of British Columbia (the
"Court") pronounced an initial order (the "Initial Order")
converting the Company's restructuring proceedings under the
Bankruptcy and Insolvency Act (Canada) (the "NOI Proceedings") to the more
flexible restructuring proceedings under the Companies'
Creditors Arrangement Act (Canada) ("CCAA"). The order granted
November 3, 2022, extends the stay of
proceedings and other relief granted in the Initial Order, as
amended and restated up to and including December 16, 2022 (the "Stay"), on which date the
Company will return before the Court to seek, among other things,
an extension of the Stay. During the Stay, the Company will launch
a Sale Investment and Solicitation Process, or "SISP," which has
been announced via a separate news release.
In addition to granting the Stay, the Court authorized the
completion of the SPA, pursuant to which the Company has agreed to
sell Great Panther Peru Holdings Ltd. and Great Panther Silver Peru
S.A.C. (the "Subsidiaries"), which together indirectly own 100% of
the Coricancha Mine in Peru, on
and subject to the terms and conditions set forth therein. Under
the terms of the Share Purchase Agreement, Newrange has agreed to
acquire the Subsidiaries for a total purchase price of US$750,000, payable in cash. Completion of the
transaction remains subject to certain closing conditions,
including, but not limited to, receipt by Newrange of the approval
of the TSX Venture Exchange.
Separately, the Company also announced that Fernando Cornejo has resigned as Chief Operating
Officer of the Company, effective October
31, 2022. Mr. Cornejo joined Great Panther in July 2019 and became Chief Operating Officer in
July 2021. Although mining activities
have ceased at the Tucano Mine site, the processing plant continues
to operate, processing existing stockpiles and spent ore. The local
management team is leading these activities with the oversight of
Sandra Daycock, President and CEO of
the Company.
Pursuant to the Initial Order, Alvarez & Marsal Canada Inc.
was appointed as monitor in the CCAA Proceedings. A copy of the
Initial Order and all materials related thereto, as well as any
other information regarding the CCAA proceedings, are available on
the court-appointed monitor's website
at https://www.alvarezandmarsal.com/GPR.
ABOUT GREAT PANTHER
Great Panther Mining is a precious metals producer focused on
the operation of the Tucano Gold Mine in Brazil where the Company controls a land
package covering nearly 200,000 hectares in the prospective Vila
Nova Greenstone belt.
CAUTIONARY STATEMENT ON FORWARD-LOOKING
INFORMATION
This news release contains forward-looking statements within the
meaning of the United States Private Securities Litigation Reform
Act of 1995 and forward-looking information within the meaning of
Canadian securities laws (together, "forward-looking statements").
Such forward-looking statements include but are not limited to the
Company's completion of the sale of the Subsidiaries and the
satisfaction of the conditions precedent set forth in the Share
Purchase Agreement.
These forward-looking statements and information reflect the
Company's current views with respect to future events and are
necessarily based upon a number of assumptions that, while
considered reasonable by the Company, are inherently subject to
significant procedural, operational, business, economic and
regulatory risks and uncertainties, including risks related to the
restructuring process and its impact on the Company's operations
and financial conditions, uncertainty regarding the ability to
obtain protection against all collection and enforcement actions
during the judicial reorganization proceedings, uncertainty
regarding the Company's ability to identify and pursue strategic
alternatives that will maximize stakeholder value, and the risks
described in respect of Great Panther in its most recent annual
information form and management's discussion and analysis filed
with the Canadian Securities Administrators and available
at www.sedar.com and its most recent annual report on
Form 40-F and management's discussion and analysis on Form 6-K
filed with the Securities and Exchange Commission and available
at www.sec.gov.
There is no assurance that these forward-looking statements will
prove accurate or that actual results will not vary materially from
these forward-looking statements. Although the Company has
attempted to identify important factors that could cause actual
results to differ materially, there may be other factors that cause
results not to be as anticipated, estimated, described, or
intended. Accordingly, readers are cautioned not to place undue
reliance on forward looking statements. Forward-looking statements
and information are designed to help readers understand
management's current views of our near- and longer-term prospects
and may not be appropriate for other purposes. The Company does not
intend, nor does it assume any obligation to update or revise
forward-looking statements or information, whether as a result of
new information, changes in assumptions, future events or
otherwise, except to the extent required by applicable
law.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/great-panther-announces-extension-of-stay-under-ccaa-proceedings-and-provides-corporate-update-301668986.html
SOURCE Great Panther Mining Limited