Ascot Resources (TSX: AOT) has made the decision to place its flagship Premier gold project in northwestern British Columbia on care and maintenance after talks broke down with its mining contractor. Shares of the company plunged.
In a press release Wednesday, the Vancouver-based gold developer said it had been locked in negotiations with Procon Mining after the latter proposed to raise price for services provided at Premier, but the talks did not result in a satisfactory outcome for both parties.
In addition, it said negotiations with alternative mining contractors have also dragged on, resulting in delays in mobilizing a mining fleet to the Big Missouri deposit, which is a critical part of the mine’s restart plan.
In order to preserve capital, the company has determined that the best path forward is to place Premier on care and maintenance, Ascot said.
Shares of Ascot Resources sank to a new…
