TORONTO, April 1 /CNW/ - Medoro Resources Ltd. (TSX-V: MRS) announced today the release of its audited consolidated financial results for the year ended December 31, 2009, together with the related management's discussion and analysis. All amounts are stated in Canadian dollars unless otherwise stated. For the year ended December 31, 2009 Medoro reported a net loss of $9.9 million or $0.06 per share compared to a net loss of $14.0 million or $0.17 per share for the prior year. The decrease in net loss for 2009 was primarily a result of the $10.7 million write-down of the Mali properties in the prior year and the related income tax effects, offset partially by an increase in non-cash stock based compensation of $6.2 million in 2009. As at December 31, 2009, the Company had $84.9 million in cash.
The Company completed three private placements during 2009 which provided a total of $112.6 million net of expenses of the placements. The funds used were principally for due diligence investigations and procedures on potential or announced acquisition targets in Colombia, the establishment of Colombian operations and for general corporate purposes.
During 2009, the Company reviewed its strategy and identified Colombia as an area for strategic investments and expansion in the gold industry. As a result of the successful implementation of this strategy the Company now owns most of the Marmato gold district in the Caldas Department of Colombia. The Company's Marmato Project comprises Zona Alta, which was acquired in October 2009, Echandia, acquired in February 2010 and Zona Baja, also acquired in February 2010.
"The year 2009 was an exciting one of transition for Medoro and we ended the year well funded with a strong position in Colombia. The Company now has a significant gold resource at Marmato, an operating underground gold mine and additional highly prospective exploration properties in the area. The year 2010 promises to be even more exciting for Medoro as the Company announced yesterday an agreement to purchase the assets of Frontino Gold Mines in Antioquia, Colombia, including three underground gold mines, one of which is currently in production. Medoro is continuing to position itself to become a leading gold producer in Colombia," said John Hick, CEO of Medoro. (Please see the Company's press release dated March 31, 2010.)
The audited consolidated financial statements for the year ended December 31, 2009 and related MD&A, and the Company's Annual Information Form for 2009 have been filed and will be available on the Company's website at www.medororesources.com and on SEDAR at www.sedar.com.
About Medoro Resources Ltd.
Medoro Resources Ltd. is a gold exploration, development and mining company with a primary emphasis on Colombia. The Company operates the producing Mineros Nacionales gold mine located in Zona Baja at Marmato and is conducting an exploration and infill drilling program at its Marmato Project to upgrade and expand its gold resources there.
On March 31, 2010, Medoro signed an asset purchase agreement to acquire all the assets of Frontino Gold Mines Limited. This acquisition is scheduled to close by July 31, 2010, subject to certain due conditions including legal and technical due diligence and requisite regulatory approvals.
Medoro also holds a 100% interest in the Lo Increible 4A and 4B concessions in Venezuela where it is continuing its efforts to obtain an exploitation permit to allow development of these gold properties when circumstances in Venezuela allow. Medoro owns interests in gold exploration properties in Mali in respect of which it is seeking possible joint venture partners to further explore these properties
Additional information on Medoro Resources Ltd. can be found by reviewing the Company's profile on SEDAR at www.sedar.com.
This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to the future financial or operating performance of Medoro and its projects. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Medoro to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and Medoro disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
Neither 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.
SOURCE MEDORO RESOURCES LIMITED
For further information: For further information: John Hick, President & CEO, (416) 603-4653; Linda Dorrington, Director, Investor Relations, (416) 603-4653