THOMPSON FALLS, MT - United States Antimony Corporation (NYSE:UAMY), a producer of antimony and zeolite products, announced today that it will cease all operational activities in Latin America and is planning to dispose of its subsidiary, US Antimony de Mexico, S.A. de C.V. (USAMSA).
The closure affects the Madero smelter facility in Coahuila and the Puerto Blanco mining facility in Guanajuato due to their historical financial underperformance and ongoing negative cash flow.
The decision to shut down these operations was made following a comprehensive review of USAMSA's financial history, revealing consistent unprofitability. This review, conducted after appointing a new CFO in mid-2023, highlighted the economic impracticality of the Mexican operations, exacerbated by stringent mining laws, operational disruptions by cartels, and outstanding tax receivables from the Mexican government exceeding one million U.S. dollars.
The company will discontinue USAMSA's activities effective immediately and begin the process of terminating the majority of its employees. USAC is actively seeking buyers or lessees for the subsidiary's operations or assets over the next year. The financial impact of these actions, including potential charges and future cash expenditures, has not yet been estimated.
Despite these closures, USAC will retain its Los Juarez mining claims and concessions in Queretaro, which are currently inactive but believed to hold significant exploration potential. The company's remaining antimony business in Thompson Falls, Montana, is profitable and will continue to operate, sourcing raw materials from Canada.
Chairman and Co-CEO Gary C. Evans commented on the decision, emphasizing the economic necessity of the move and reaffirming the company's commitment to antimony, deemed a critical mineral by the U.S. government. USAC is exploring new antimony deposits in Alaska and Canada and is in discussions with U.S. government departments regarding potential grants and loans.
This announcement is based on a press release statement from United States Antimony Corporation.
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