Mining Weekly reported that on Wednesday, Veris Gold Corp. (TSX:VG) lost over half its value after it defaulted on two forward gold purchase contracts with the London branch of Deutsche Bank AG (NYSE:DB).
Currently, the company is thinking about what — if any — actions it will take.
As quoted in the market news:
The Vancouver-based midtier company, which is operating the Jerritt Canyon processing plant and gold mines located 80 km north of Elko, Nevada, said it had failed to make the monthly December gold delivery, or pay the cash equivalent of the gold delivery shortfall. This was the result of an electrical accident resulting in a fire that occurred in the primary crushing building at the Jerritt Canyon mill operations.
The fire resulted in a temporary suspension of operations, which negatively affected output during December.
Veris said the forward gold purchase contracts with DB did not contain a force majeure provision, that would have allowed Veris to temporarily suspend its obligations under the contracts owing to circumstances beyond its control.