(all financial figures are in United States dollars)
TORONTO, July 13 /CNW/ - Zaruma Resources Inc., (TSXV-ZMR.H), today reported that the quarterly Consolidated Financial Statements and Management's Discussion and Analysis report for the three months ended March 31, 2010 have been filed on SEDAR, www.sedar.com and will be posted on the Company's website, www.zaruma.com. The filing of the quarterly report was delayed as a result of the late completion of the report for the year ended December 31, 2009, which was filed on SEDAR on June 30, 2010.
Activity in the first quarter involved the pursuit of a refinancing of the Company in order to proceed with the Luz del Cobre, ("LdC"), copper project, which has been stalled since October 2008. In Mexico the Company maintained the security on the Luz del Cobre minesite and continued with legal action to protect the Company's investment in the San Antonio, Sonora, property.
The net loss for the quarter was $515,000 compared to $900,000 in the first quarter of 2009. The 2009 results were restated to reflect the decision to expense the interest accruing on the LdC project during the period of inactivity. The interest cost for the three months was $267,000 compared to $325,000 in the first quarter of 2009. Corporate administrative costs were $113,000 compared to $201,000 in the same period in 2009, reflecting the low level of activity.
The Company's shares have been subject to a Cease Trade Order since May 13, 2010 due to the inability to file its audited consolidated financial statements for the year ended December 31, 2009. With the filing of those statements and these interim report filings for the three months ended March 31, 2010, the Company will be up to date on its filings and will apply to have the Cease Trade Order rescinded.
As previously reported, the Company entered into a Memorandum of Understanding with Gravity Ltd. on May 5, 2010 with regard to an equity investment of $20 million in common shares of the Company, which in conjunction with a proposed debt financing, could resolve the required financing to reactivate the LdC project. The financing proposal has been presented to the shareholders for consideration at the Annual Meeting of Shareholders being held in Toronto on July 19, 2010.
This News Release contains forward-looking statements which are typically preceded by, followed by or including the words "believes", "expects", "anticipates", "estimates", "intends", "plans" or similar expressions. Forward-looking statements are not guarantees of future performance as they involve risks, uncertainties and assumptions, including securing additional funding to continue its development programmes.
Zaruma Resources Inc. is listed on the NEX Board of the TSX Venture Exchange (symbol ZMR.H) and the Frankfurt Stock Exchanges, (symbol: ZMR). Common shares outstanding 117,608,747.
Neither TSXVenture 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.
SOURCE ZARUMA RESOURCES INC.
For further information: For further information: Zaruma Resources Inc., 20 Toronto Street, 12th Floor, Toronto ON, M5C 2B8, Canada, Fax: 416 367 3638, email@example.com, www.zaruma.com; Dr. Thomas Utter, President and CEO, Tel.: +1 52 662 222 0063, firstname.lastname@example.org; Frank van de Water, CFO and Secretary, Tel.: 416 869 0772, email@example.com