New delay at Shafter mine, lawsuit possible

The Shafter mine in Presidio County today announced an additional delay for the furnace at the problem plagued mine.

In a press release today, the parent company, Aurcana Corporation of Vancouver, British Columbia said a new retort furnace and smelting furnace will be delivered and installed in the Shafter dore refinery.”

During a conference call with securities anylists in May, Aurcana CEO Lenic Rodriguez announced the furnace would be delivered in mid-July. Aurcana offered no reason for the new delay.

A request for comment from Aurcana has not been returned at this time. All company executives are currently in Mexico according to the company.

Yesterday, a Canadian law firm announced it was seeking comment from investors who may want to join a class action lawsuit against Aurcana. Stock in Aurcana is down 82% in the last year.

According to the firm:

1. The law firm of Sutts, Strosberg LLP is counsel in a class action against Aurcana Corporation (“Aurcana”), Lenic Rodriguez and Sadek El-Alfy. The claim is on behalf of all persons, other than certain persons associated with the defendants, who acquired Aurcana shares on or after December 14, 2012 to and including April 11, 2013 (the “Class Period”) and held some or all of those shares at the close of trading of the TSX Venture Exchange on April 11, 2013 (the “Class Members”).

2. The plaintiff alleges that throughout the Class Period, the defendants misrepresented that Aurcana’s Shafter Mine was operating on a continuous basis at an average rate of 600 tons per day on a continuous basis.

3. On April 12, 2013, Aurcana disclosed that the Shafter Mine had not yet reached its initial target of 600 tons per day on a continuous basis. After the disclosure, Aurcana’s share price declined by more than 20 percent.