(Expressed in US dollars except where noted as C$)
TORONTO, May 21, 2013 /CNW/ - Red Tiger Mining Inc., (TSXV:RMN), (the "Company" or "Red Tiger") today reported that the quarterly unaudited Condensed Interim Consolidated Financial Statements and Management's Discussion and Analysis report for the three months ended March 31, 2013 have been filed on SEDAR, www.sedar.com and on the Company's website, www.redtigermining.com .
During the quarter, 949 tonnes of COMEX Grade 1 copper was produced and sold at an average price of $3.39 per pound. Ore crushed and stacked on the leach pad during the quarter totaled 181,992 tonnes at a grade of 0.99% Cu.
As previously reported, on March 25, 2013, the Company announced that the ejido of San Antonio de la Huerta (local land owners) caused an illegal stoppage of the mining and crushing/stacking operations at the Luz del Cobre ("LdC) project. On April 5, 2013, state authorities restored access to all areas of the mine site without major confrontations. Mining, crushing and stacking operations have all resumed. On April 8, 2013, the Company announced that it has resumed operations at its LdC mine. In May 2013, the Company and the Ejido signed an agreement that extends the leased land to December 2018. The new agreement requires annual payments of 5,880,000 Mexico Pesos ($470,000).
As the project has not reached "Commercial Production", sales proceeds net of costs are being credited to the carrying value of the project, and are not considered to be revenue from operations at this stage.
The loss for the three months ended March 31, 2013 before the fair value change of derivative liability was $1,243,677 compared to a loss of $451,243 for the comparative period in 2012. This is a non-IFRS performance measures obtained by excluding a gain on the fair value change of derivative liability of $956,411 for the three months ended March 31, 2013 compared to a gain on the fair value change of derivative liability of $10,947,054 for the comparative period in 2012. The net loss was $287,266 for the three months ended March 31, 2013, as compared to net income of $10,495,811 for the comparative period in 2012.
On April 16, 2013, the Company completed a private placement for gross proceeds of Cdn$500,000, consisting on 5,000,000 common shares at a price of $0.10 per common share. The common shares were subscribed for by one major shareholder of the Company.
On April 16, 2013, the Company completed a shares-for-debt transaction whereby half of the August and September loans were settled by issuance of 8,750,020 common shares of the Company. The total debt settled was $875,002, being half of the principal outstanding under the August and September loans inclusive of interest accrued thereon up to and including April 12, 2013. The shares-for-debt transaction was with one major shareholder of the Company.
On April 30, 2013, the Company completed a private placement for gross proceeds of Cdn$500,000, consisting on 5,000,000 common shares at a price of $0.10 per common share. The common shares were subscribed by one major shareholder of the Company.
On May 16, 2013, the Company issued 5,000,000 common shares of the Company to the mining contractor in satisfaction of $1,423,024 trade payable, representing the accounts payable balance at December 31, 2012.
Thomas F. Utter, Dipl.-Geol, Dr.phil.nat., (Eurogeologist) acted as Qualified Person, as defined in NI43-101, with respect to the disclosure of the scientific and technical information contained in this news release.
Red Tiger is listed on the TSX Venture Exchange (symbol "RMN"). The number of shares outstanding is 97,848,557.
Neither the 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.
This news release may contain forward-looking statements, which are subject to risks and uncertainties and other factors that may cause results to differ materially from expectations. Actual results may vary from the forward-looking information. Factors that could cause actual results to differ materially from the forward-looking information include: disruption to operations, site damage due to extreme weather, and unexpected drop in PLS grade. The production estimate has been extrapolated based on current levels of production. Accordingly, readers are cautioned not to place undue reliance on this forward-looking information.
SOURCE: Red Tiger Mining Inc.
For further information:
Dr. Thomas Utter
President and CEO
Tel.: +1 52 662 311 8839
CFO and Secretary
Tel.: 416 637-1517 x 107