Kalsaka/Sega, Burkina FasoOverview
Kalsaka/Sega was a producing gold mine in Burkina Faso. First gold was poured at the mine in 2008 and it entered commercial production in mid 2009. Kalsaka's life of mine was extended through the acquisition of the neighbouring Sega Gold Project in May 2012.
On 06 August 2014, Amara announced it had applied for creditor liquidation of one of its local subsidiaries in Burkina Faso, Seguenega Mining SA (SMSA) and production ceased at Kalsaka/Sega.
During H1 2014, Kalsaka/Sega produced 31,030 ounces of gold. While H1 2014 production is in line with the run rate for the lower end of the range of the 2014 production guidance of 60-70,000 ounces, following the appointment of a receiver Amara will no longer be in control of Kalsaka/Sega and thus it is not appropriate for the Company to maintain its production guidance for the year.
Amara has set aside US$3 million in a bonded bank account, which adequately covers all of the required rehabilitation work, including the portion that has already been completed. The redundancy payments for the operational team in Burkina Faso wil be a preferential creditor under the liquidation, ensuring that all employees are treated fairly.
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