VANCOUVER, July 9, 2013 /CNW/ - Eco Oro Minerals Corp. ("Eco Oro" or the "Company") (TSX: EOM) announces that, as a result of the ongoing delay in defining the
boundaries of the Páramo of Santurbán, Eco Oro is implementing further
cost reduction initiatives to those announced by the Company in
As was the case with the September 2012 initiatives, these measures are
being implemented with the view to protecting the Company's treasury
while it works with the Colombian authorities to obtain a favorable
resolution of the matter. To this end, the Company has provided the
corresponding authorities with all information necessary to enable the
Ministry of Environment and Sustainable Development to define any
ecosystems that may exist in and around the Company's Angostura
Project. By way of example, the Company engaged Ecodes Ingenieria
Ltda., a reputable Colombian company, to conduct an ecosystem
biodiversity and socio-economic study to a degree of detail not
previous undertaken in Colombia. The study concluded that páramo does
not exist in the area of the Angostura deposit, and both the study and
its conclusions have been discussed with the relevant authorities.
Management believe that this study was favourably received and no
significant technical concerns were noted. However, the Company is
still awaiting a formal decision with respect to the páramo
Cost reduction measures include:
All discretionary spending on the Angostura Project will be deferred
until the boundaries of the Páramo as relates to Angostura's Project
are formally declared. Technical activities, including the completion
of the PFS, will be suspended. The Company plans to maintain its
environmental and security programs at Angostura and all permits will
be kept in good standing.
General and administrative expenses in both Canada and Colombia will be
decreased through reductions in employee and consultant costs, in
travel and marketing costs, and discretionary expenditures.
Non-executive members of the Board of Directors will take a reduction in
The Company's cash position will continue to be managed prudently while
management seeks out other opportunities, within Colombia and
elsewhere, to diversify the Company's portfolio of assets, which
includes the world-class Angostura deposit.
"Regretfully, these measures greatly impact our employees and the
communities in which we operate and are not taken lightly." stated João
Carrelo, President & CEO of Eco Oro, "We will maintain our strong
relations with the Colombian authorities and assist them, in any way we
can, with formally defining the boundaries of the Páramo of Santurbán.
We look forward to the day that the authorities accept the conclusions
in the Ecodes study and Eco Oro can proceed with developing the
Angostura Project and providing the associated benefits for all our
stakeholders, including the people of Santander and all Colombians."
Eco Oro Minerals Corp. is a publicly-traded precious metals exploration
and development company with a portfolio of projects in Colombia. Eco
Oro has been focused on its wholly-owned, multi-million ounce Angostura
gold-silver deposit, located in northeastern Colombia, for over 18
years during which time it has invested over $220 million in the
project's development and in that of the surrounding communities. Eco
Oro is committed to further advancing the Angostura Underground Project
in a socially and environmentally responsible manner that will be
beneficial for all stakeholders.
The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release.
Certain statements in this news release are "forward-looking" within the
meaning of Canadian securities legislation. They include statements
about cost reduction initiatives and timelines and outcomes relating to
the determination of boundaries for páramo in the area of the Angostura
Project. Forward-looking statements are necessarily based upon the
current belief, opinions and expectations of management that, while
considered reasonable by the Company, are inherently subject to
significant business, economic, competitive, political and social
uncertainties and other contingencies. Many factors could cause the
Company's actual results to differ materially from those expressed or
implied in the forward-looking statements. These factors include, among
others, political influence, government regulation as well as other
risk factors set out under the heading "Risk Factors" in the latest
Annual Information Form which is available on SEDAR at www.sedar.com. Investors are cautioned not to put undue reliance on forward-looking
statements due to the inherent uncertainty therein.
SOURCE: Eco Oro Minerals Corp.
For further information:
please visit the Company's website at www.eco-oro.com or contact:
President & CEO
Tel: +1 604 682 8212
TF: 1 855 682 8212
Mary Ellen Thorburn
Tel: +1 604 682 8212
TF: 1 855 682 8212