MONTREAL, QUEBEC--(Marketwire - Nov 9, 2012) - Malaga Inc. ("Malaga" or the "Corporation") (MLG.TO)(MLGAF) announces that it has suspended mining operations at its Pasto Bueno tungsten mine putting the mine on care and maintenance. Malaga had previously announced, on October 22, 2012, that its tungsten process plant had been put in care and maintenance due to the accident which caused the power outage at Pasto Bueno (see press release - October 22). During this period, adequate security measures of the plant and mine site have been put in place and will continue up to the restart of both the plant and mine.
Suspension of mining operations is one of the measures implemented by Malaga to reduce its costs and preserve cash. The Corporation is still working to secure financing to resume mine and plant operations and pursue its objectives related to mine development and production.
In addition, Malaga is currently in negotiations to monetize all the copper by-product by the end of the current year and also intends to monetize other assets.
"We intend to return to full production once we secure the necessary financing and will also review the mine development plan to improve operational efficiency" said Pierre Monet, President and CEO. "We continue to work closely with our stakeholders to mitigate the consequences of suspending our mining operations".
Malaga also announces that repairs to its hydro-electric line are underway; materials have been purchased and transportation of equipment to site is planned. Repair should be completed by the end of November.
This news release contains certain forward-looking statements or forward looking-information. These forward looking statements are subject to a variety of risks and uncertainties beyond the Corporation''s ability to control or predict which could cause actual events or results to differ materially from those anticipated in such forward looking statements. Such risks and uncertainties are disclosed under the heading "Risk Factors" in the Corporation''s Annual Information Form for the year ended December 31, 2011 and dated March 27, 2012. Further, forward-looking information is in addition based on various assumptions, including, without limitation, the expectation and beliefs of management, the assumed long term price of tungsten, that the Pasto Bueno property is a technical viable and economic operation and that the Corporation can access financing. Should one or more of these risks and uncertainties materialize, or should the underlying assumption prove incorrect or different, actual results may vary materially from those described in the forward-looking statements. The information provided reflects management''s current expectations regarding future events and performance as of the date of this news release. Accordingly, readers should not place undue reliance on forward-looking statements.
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