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.
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SOURCE MEDORO RESOURCES LIMITED
For further information: For further information: John Hick, CEO & President, (416) 603-4653, email@example.com