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Company Response

28 Feb 2017

Author:
Morumbi Resources

Morumbi Resources response

Thank you for the opportunity to respond to the article that you had uncovered.  It was written during a short dispute with the labor force and work stoppage at El Mochito, derived from misunderstandings and different interpretations on the application of adjustments in relation to the payment of the minimum salary as mandated by the Honduran legislation. The disagreement was ultimately clarified and accepted by all the parties involved…There are many suppositions within the article that we could refute, but our priorities are rather to impress upon our workforce, the community of Las Vegas, and the country that El Mochito and AMPAC now have new owners (ownership changed only on December 20th) that are firmly committed to investing new capital in the operation to restore it to its former heights of prosperity, and to be a partner with all the local stakeholders including our workers, suppliers and the local community to make this happen for the benefit of each group involved.  We want to align these interests through a new collective bargaining agreement with the union, currently being negotiated, so that everyone benefits from increased production and profitability at the mine…Regarding compliance with Honduran laws, AMPAC is subject to periodic reviews by authorities to ensure compliance…We regret the mistakes by the former owners of the mine, but we are also working hard to set the business on a positive sustainable path that will benefit everyone involved.