Orosur Mining Inc. operating unit Loryser SA applied to begin reorganization proceedings and creditor protection at the Reorganization Court in Montevideo, Uruguay, citing operational challenges at the San Gregorio gold mine since late 2017, according to a June 15 news release.
Loryser will run the underground operations at San Gregorio until the end of July then place the operation under care and maintenance.
The miner said the scarcity of alternative sources of ore at San Gregorio has made it difficult to reverse the operational challenges, resulting in constraints to Loryser's financial liquidity.
The court is expected to take several days to assess whether the necessary requirements are met to declare the start of the reorganization proceedings.
The company's Colombian gold exploration program will continue, with the miner viewing the reorganization proceeding as its best option to return to a stable situation while unlocking the value of its Colombian exploration assets.