By Buzz on the Boards
North American Tungsten Corporation (TSX: V.NTC, Stock Forum) announced
Monday that it will temporarily suspend production at its CanTung tungsten
mine in the Northwest Territories, effective October 15. ...
The move comes as a result of increased product inventory and declining
tungsten prices, says the company.
"The mine will be placed on a care and maintenance program that will
enable a timely and cost effective return to production when market
conditions improve," says North American Tungsten, which adds that it will
continue to sell product from inventory and will have sufficient material
to satisfy all contractual sales obligations.
"I expect that a tungsten supply shortfall will develop as the world
economy improves. We fully intend to pursue plans to return the mine to
full operations after markets have significantly firmed," says Stephen
Leahy, the company's chairman and CEO.
The company says it will continue with its planned summer exploration
drilling program at both the CanTung Mine and the MacTung Deposit, with
the majority of funds spent on the MacTung Deposit.
In a post on the company's Bullboard early Monday morning, brennan said:
"The employees at the Cantung Mine received written notice over the
weekend that the mine will be shutting down effective Oct 21/09. Will be
interesting to see if they halt the stock before Monday's open[sic]."
Shares of North American Tungsten were down more than 21% to 12.5 cents