(Expressed in US dollars except where noted as C$)
TORONTO, April 10, 2013 /CNW/ - Red Tiger Mining Inc., (TSXV:RMN), (the "Company" or "Red Tiger") today reported that the Audited Consolidated Financial Statements and Management's Discussion and Analysis report for the year ended December 31, 2012 have been filed on SEDAR, www.sedar.com and on the Company's website, www.redtigermining.com.
During the year, 2,284 tonnes of COMEX Grade 1 copper were produced by a leach, solvent extraction/electrowinning process and sold at an average price of $3.47 per pound. Ore mined by an open pit, crushed and stacked on the leach pad during the year totaled 892,742 tonnes at a grade of 0.96% Cu. Ore mined is proving the grade of copper and tonnages conform to the block model used in the feasibility study.
As previously reported, a storm and unprecedented rainfall stopped all production on July 17th as a result of damage on the leach pad. Over four weeks of production was lost before the irrigation on the leach pad resumed on August 17th, which adversely affected the cash flow in the third quarter of 2012. During the stoppage, mining operations continued, with newly crushed ore filling the erosion channels and voids on the pad, with increased emphasis on expanding the total area under irrigation.
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 year ended December 31, 2012 before the fair value change of derivative liability was $4,201,714 compared to a loss of $1,297,733 for the year ended December 31, 2011. The net income for the year ended December 31, 2012 was $17,839,740 compared to a loss of $10,999,994 for the year ended December 31, 2011. These are non-IFRS performance measures obtained by excluding a gain on the fair value change of derivative liability of $22,041,454 for the year ended December 31, 2012 versus a loss on the fair value change of derivative liability of $9,724,151 for the year ended December 31, 2011.
During the year, the Company completed three debt financings for gross proceeds of $5,090,000 and two equity financings for gross proceeds of Cdn$3,962,000 ($3,977,789).
It is expected that commercial levels in excess of 500 tonnes per month will be achieved in the third quarter of 2013.
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 LdC. On April 8, 2013, the Company announced that it has resumed operations at its LdC mine. On April 5, 2013, state authorities restored access to all areas of the mine site without major confrontations. Mining, crushing and stacking operations have resumed.
On April 8, 2013, the Company announced that it intends to carry out, subject to the approval of the TSX Venture Exchange, a non-brokered private placement to, among other investors, insiders of the Company ("Insiders") for gross proceeds of up to CAD$1,500,000 (the "Private Placement") consisting of common shares of the Company (each, a "Share") at a price of CAD$0.10 per Share. The proceeds will be used by the Company for required capital expenditures and working capital at the LdC mine. No commission or finder's fee will be paid in connection with the Private Placement. Of the gross proceeds, approximately CAD$1,000,000 is expected to be subscribed for by the Insiders. Once the shares are issued, they will be subject to a hold period of four months and one day from the date of issuance.
Thomas F. Utter, Dipl.-Geol, Dr.phil.nat., (European Geologist) 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 74,098,537.
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 contains forward-looking statements, which are subject to risks and uncertainties and other factors that may cause results to differ materially from expectations. Specifically, this news release contains forward-looking information regarding the Company's projected copper production, completion of the Private Placement, the participation in the Private Placement by non-insiders, the availability of, and the Company's reliance upon, certain exemptions from applicable securities law and/or TSXV requirements, and the Final Acceptance of the Private Placement by the TSXV. 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