TORONTO, Aug. 31 /CNW/ - Zaruma Resources Inc., (TSX-ZMR), (the
"Company") today announced that it has been advised by the Toronto Stock
Exchange, ("TSX"), that TSX has determined that the Company's shares will be
delisted from the TSX on September 30, 2009.
The listing was under review because the suspension of development of the
Luz del Cobre Copper Project was an event of default on the debt financing,
with the result that the entire amount of principal and interest became a
current liability. As the amount is approximately US$25 million, the Company
is not in compliance with the requirement to maintain a positive working
capital position. A formal demand for the repayment of the outstanding debt
has not been approved by the court in Mexico.
The Company is currently actively discussing the financing of Luz del
Cobre with several interested parties, with the expectation that an agreement
can be reached on the terms and conditions in the near future.
With the decrease in the projected cash cost of producing copper to
US$1.15 per pound, and the current market price in the range of US$2.85 to
$2.95, the Luz del Cobre Copper Project looks very attractive. The project
could be producing copper at a planned rate of 15 million pounds per year
within six months of completing new financing arrangements.
The Company plans to apply for a listing on NEX, which is a separate
board of the TSX Venture Exchange in order that the Company's shares can be
listed for trading on NEX at the time the shares are delisted from the TSX. If
the Company resolves its working capital problem through a new financing, the
Company will qualify to move onto the TSX Venture Exchange from NEX.
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 programs.
Zaruma Resources Inc. is a pre-production stage company listed on The
Toronto and Frankfurt Stock Exchanges (symbol: ZMR). Common shares currently
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: +1 521 662 210 5650,
firstname.lastname@example.org; Frank van de Water, CFO and Secretary, Tel.: (416)