Market Overview

Amerigo Provides Labour Update at MVC

Share:

VANCOUVER, British Columbia, Sept. 30, 2016 (GLOBE NEWSWIRE) -- Amerigo Resources Ltd. ("Amerigo" or the "Company") (TSX:ARG) provides the following update in respect of Minera Valle Central ("MVC"), the Company's operation located near Rancagua, Chile.

During the month of September 2016, MVC has been engaged in negotiations with its 216-member union to renew MVC's current collective agreement, which has an expiry date of September 30, 2016. MVC has presented its final best offer which was rejected by the vote of the majority of the union members on September 27, 2016.

On September 29, 2016, MVC requested the mediation services (Buenos Oficios) of the Labor Authority (Inspección del Trabajo) in order to extend negotiations. Under Chilean law, upon such request, the date on which a strike can start will be automatically postponed by 5 working days starting from the date of the request. As a result, the union would be in a position to commence strike action as of the first working shift on October 6, 2016. The commencement date of a strike may be further postponed for an additional period of up to five calendar days if both parties, through mutual agreement, request the continuation of the referred mediation services of the Labor Authority. A strike could therefore potentially be postponed to commence on the first working shift on October 11, 2016.

The Company believes MVC has presented a fair offer to its union members in these difficult times which does not jeopardize a long-term, sustainable operation. MVC will continue its discussions with the union in the following days, in an effort to reach a new collective agreement. MVC is also taking the necessary operational and legal steps to be prepared for a strike.

About the Company:

Amerigo Resources Ltd. is an innovative copper producer with a long-term partnership with Codelco, the world's largest copper producer. Amerigo produces copper concentrate at the MVC operation in Chile by processing fresh and historic tailings from Codelco's El Teniente mine, the world's largest underground copper mine. Tel: (604) 681-2802; Fax: (604) 682-2802; Web: www.amerigoresources.com; Listing: ARG:TSX.

For further information, please contact: Rob Henderson, President and CEO (604) 697-6203 Aurora Davidson, Executive Vice-President and CFO (604) 697-6207
View Comments and Join the Discussion!