Vale, BHP propose $238m DIP financing for Samarco

SilverCrest is “an attractive takeout candidate for a mid-tier gold and/or silver producer.”

The $696m move comes about a month after London-listed oil and gas major BP discovered further oil prospects in the Gulf of Mexico.

The company said it failed to reach an agreement with a client in a dispute over a mining project in Latin America, prompting it to slash its profit forecast by more than 40% for the year.

State-development bank BNDES intends to sell shares in the miner, but has yet to find a good moment to do so.

Peru's environmental regulator OEFA has concluded that mining waste from the company's Cuajone mine did not spill into a river during heavy rains last week.

The Andean nation is the world's fifth-largest exporter of coal.

"I think this is just a natural volatility after such a big supply shock"

The company said that any potential restart would be dependent on market conditions.

The company pinned the cost increases partly on mining ending at its low-cost Cortez Hills open pit in Nevada in the first half of the year.