(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
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
SOURCE: Red Tiger Mining Inc.
For further information:
Red Tiger Mining Inc.
20 Toronto Street, 12th Floor, Toronto ON, M5C 2B8, Canada
Fax: 416 367 3638
Dr. Thomas Utter
President and CEO
Tel.: +1 52 662 311 8839
CFO and Secretary
Tel.: 416 637-1517 x 107