Tahoe Resources shares down 20 per cent on fears over project in Guatemala

VANCOUVER – Shares in Tahoe Resources Inc. (TSX:THO) fell nearly 25 per cent Thursday even as the company said government-proposed mining law reforms in Guatemala should not affect its Escobal silver project.

The concern came, the company said, after a proposal by the government to allow state ownership in mining projects.

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The company said communications with high-level officials in Guatemala’s Ministry of Energy and Mines indicate that the government has no intention of acquiring an interest in the Escobal project or others in the country.

“The government of Guatemala has not made any approach to the company regarding this proposed reform, nor do we expect it to,” CEO Kevin McArthur said in a statement.

Tahoe said full permitting for the Escobal project is still anticipated in the second half of 2012.

Shares in the company were down $3.92 at $12.25 on the Toronto Stock Exchange.