TORONTO
,
Nov. 30
/CNW/ - Medoro Resources Ltd. ("Medoro" or the "Company") (TSX-V: MRS) announced today results for the three month and nine month periods ended
September 30, 2009
. For the third quarter, Medoro reported a net loss of
$6.1 million
or
$0.03
per share as compared to a net loss of
$1.1 million
or
$0.01
per share in the third quarter of the previous year. For the nine months ended
September 30, 2009
the Company reported a loss of
$7.2 million
or
$0.06
per share as compared to a loss of
$6.1 million
or
$0.08
per share in the same period last year.
The increase in net loss for the third quarter compared to the third quarter of the previous year was primarily a result of a
$4.6 million
increase in operating expenses, an increase of
$0.3 million
in other expenses and a decrease of
$0.1 million
in future income tax recovery.
At
September 30, 2009
, the Company had
$15.5 million
of net working capital, including cash and short-term investments of
$14.2 million
and no long-term debt. On
November 3, 2009
, the Company completed a private placement of 128,700,000 special warrants. The special warrants were issued at a price of
$0.80
per special warrant for gross proceeds of
$102,960,000
. Net cash proceeds were approximately
$96,251,000
after costs of
$6,709,000
.
The Company has restated its financial statements for the three and nine month periods ended
September 30, 2008
. The effect of the adjustments for the nine month periods ended
September 30, 2008
increases the net loss by
$382,000
. The increase is the result of an increase to the foreign exchange loss of
$545,000
offset by an increase in future income tax recovery of
$163,000
. The adjustment to the foreign exchange loss and future income tax recovery was a result of correcting the foreign exchange rate used to translate Venezuelan Bolivars and to record the future income tax effects related to the Venezuelan operations consistent with the method used at
December 31, 2008
. There is no effect on the financial statements reported for the year ended
December 31, 2008
.
With the completion of the
November 3, 2009
equity financing, the Company is focused on the exploration and development of its interests in the Zona Alta area of Marmato and the completion of the consolidation of the Marmato area through the proposed acquisitions of
Colombia
Gold plc and Mineros Nacionales S.A. With the completion of the
Colombia
Goldfields acquisition and upon the successful completion of the two proposed acquisitions, the Company will have a significant interest in the historic Marmato gold district of
Colombia
.
About Medoro Resources Ltd.
Medoro Resources Ltd. is a gold exploration and development company focused on acquiring gold properties of merit to bring to production, with a primary emphasis on
Colombia
. The Company owns the rights to interests in the Zona Alta in the Marmato region, located in
Colombia
, and recently announced the execution of: (i) a non-binding letter of intent to acquire all of the issued and outstanding common shares of Mineros Nacionales S.A.; and (ii) a non-binding letter of intent to acquire the securities of
Colombia
Gold plc, each of which has properties located in the Marmato District of
Colombia
. Medoro also holds a 100% interest in the Lo Increible 4A and 4B concessions in
Venezuela
and interests in other gold exploration areas outside of
South America
. Additional information on Medoro Resources Ltd. can be found by reviewing the Company's profile on SEDAR at www.sedar.com.
This press release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. Actual results may differ materially from those currently anticipated. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward looking statements are detailed from time to time in the company's periodic reports filed with the British Columbia Securities Commission and other regulatory authorities. The company has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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
%SEDAR: 00020446E
For further information: For further information: John Hick, CEO & President, (416) 603-4653, [email protected]
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