Red Tiger Reports Third Quarter Results
(Expressed in US dollars except where noted as C$)
TORONTO, Nov. 28, 2012 /CNW/ - Red Tiger Mining Inc., (TSXV:RMN), (the "Company" or "Red Tiger") today reported that the quarterly unaudited Condensed Interim Consolidated Financial Statements and Management's Discussion and Analysis report for the three and nine months ended September 30, 2012 have been filed on SEDAR, www.sedar.com and on the Company's website, www.redtigermining.com.
During the quarter, 572 tonnes of COMEX Grade 1 copper was produced and sold at an average price of $3.53 per pound. Ore crushed and stacked on the leach pad during the quarter totaled 202,277 tonnes at a grade of 1.06% Cu. Ore mined is proving the grade of copper and tonnages conform to the block model used in the feasibility study. The ore is leaching according to plan and the recovery rates are in-line with expectations.
As previously reported, the effects on the leach pad from a storm and unprecedented rainfall caused all production to be halted on July 17, 2012. Over four weeks of production were lost before the irrigation on the leach pad resumed on August 17th, which adversely affected the cash flow in the third quarter. During the stoppage, mining operations continued, with newly crushed ore filling the erosion channels and voids on the pad, with increased emphasis on expanding the total area under irrigation.
Despite these events, in October 2012 the Company achieved reached a monthly record of 432 tonnes of COMEX Grade 1 copper that was produced and sold. It is expected that commercial levels in excess of 500 tonnes per month will be achieved early next year.
As the project has not reached "Commercial Production", sales proceeds net of costs are being credited to the carrying value of the project, and are not considered to be revenue from operations at this stage.
The loss for the three months ended September 30, 2012 before the fair value change of derivative liability was $1,370,842 compared to a loss of $1,344,582 for the comparative period in 2011. The net loss for the nine months ended September 30, 2012 was $3,034,442 compared to a loss of $498,485 for the comparative nine month period in 2011. These are non-IFRS performance measures obtained by excluding a gain on the fair value change of derivative liability of $1,635,765 for the three months ended September 30, 2012, and a gain of $21,491,989 for the nine months ended September 30, 2012. In accordance with IFRS, the net income was $264,923 for the three months ended September 30, 2012 and net income of $18,457,547 for the nine months ended September 30, 2012, as compared to the net loss in the quarter and nine months in 2011 shown above.
During the quarter, the Company completed two debt financings for gross proceeds of $1,590,000 and an equity financing for gross proceeds of $2,020,300, consisting of 4,905,000 Units at C$0.40. Each unit comprises one common share and one common share purchase warrant, each whole warrant entitling the holder to purchase one common share at Cdn$0.60 per share for three years.
In October 2012, the company reported that it reached a monthly record of 432 tonnes of COMEX Grade 1 copper that was produced and sold. It is expected that commercial levels in excess of 500 tonnes per month will be achieved early next year.
In addition, the Company has granted an aggregate of 250,000 incentive stock options to the Company's new Chief Financial Officer. The options have been granted at an exercise price of $0.40 per common share, expiring on October 1, 2017, with 1/3 of the options vesting immediately and the remainder vesting over 24 months. Stock option grants are subject to the terms and conditions of the Company's Stock Option Plan and the approval of the TSX Venture Exchange.
Thomas F. Utter, Dipl.-Geol, Dr.phil.nat., (European Geologist) acted as Qualified Person, as defined in NI 43-101, with respect to the disclosure of the scientific and technical information contained in this news release.
Red Tiger is listed on the TSX Venture Exchange (symbol "RMN"). The number of shares outstanding is 74,098,537.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements, which are subject to risks and uncertainties and other factors that may cause results to differ materially from expectations. Specifically, this news release contains forward-looking information regarding the Company's projected copper production, completion of the Private Placement, the participation in the Private Placement by non-insiders, the availability of, and the Company's reliance upon, certain exemptions from applicable securities law and/or TSXV requirements, and the Final Acceptance of the Private Placement by the TSXV. Actual results may vary from the forward-looking information. Factors that could cause actual results to differ materially from the forward-looking information include: disruption to operations, site damage due to extreme weather, and unexpected drop in PLS grade. The production estimate has been extrapolated based on current levels of production. Accordingly, readers are cautioned not to place undue reliance on this forward-looking information.
SOURCE: Red Tiger Mining Inc.For further information:
Dr. Thomas Utter
President and CEO
Tel.: +1 52 662 311 8839
CFO and Secretary
Tel.: 416 637-1517 x 107