TORONTO, April 18, 2013 /CNW/ - White Tiger Gold Ltd. ("White Tiger" or the "Company") (TSX: WTG) today announces an update of its 2013 production forecast and a revised medium term production target.
The ability of the Company to meet both its production target for 2013 and its medium term production target is dependent upon obtaining adequate financial resources. This update in the Company's production forecast and its medium term production target was necessitated by: (i) the significant adverse impact caused by the financial uncertainty arising from the Company's ongoing discussions with VTB Capital plc ("VTB Capital") regarding the US$150 million senior secured term loan facility (the "VTB Facility") entered into between the Company's wholly-owned subsidiary Diascia Investments Limited ("Diascia") and VTB Capital on February 2, 2012 and amended and restated on March 7, 2012; and (ii) the Company's inability to secure funding from alternative sources.
Updated 2013 Production Forecast
The Company currently expects 2013 gold production at its Savkino Mine of approximately 18,000 ounces instead of the original production target of 48,000 ounces. The previous production target was based on the Company's planned expansion of the Savkino Mine for the 2013 production season, which runs approximately from April to October. The expansion of the Savkino Mine will be delayed until the Company can secure the required funding. Because of the seasonal production season, the earliest point at which production from the Savkino Mined expansion can be achieved is in 2014.
Revised Medium Term Production Target
On March 28, 2013, the Company downgraded its medium term production target from 130,000 ounces of gold per annum to 50,000 ounces of gold per annum. The Company is again downgrading its medium term production target from 50,000 ounces of gold per annum to 42,000 ounces of gold per annum. The Company's continuing financial uncertainty is delaying its ability to expand production beyond current levels. According to the Company's latest estimates, it will need approximately US$55 million in additional funding to be in a position to meet the revised production target.
The Company is continuing to evaluate the implementation period for the other projects of the Company (including Nasedkino, Zolin-Arkiinsk and others). The decisions on the timing of the development of these projects will be made once the Company has clarified its funding strategy and will be done in conjunction with on-going assessment of exploration data (which is planned to be completed in 2013-2014).
About White Tiger
White Tiger Gold Ltd. is a TSX-listed mining and exploration company, focused on the development of mineral resources in the Russian Federation.
Caution Concerning Forward-Looking Information
This news release contains forward looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements") relating, but not limited to, the Company's expectations, intentions and beliefs (including, without limitation, statements regarding, the Company's mines, projects and licence areas, exploration and development plans (including the timing thereof) and potential, anticipated gold production and future plans and objectives of the Company. Words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "estimate" and similar terminology are used to identify forward-looking statements. Such statements are based on assumptions, estimates, opinions and analysis made by the management of the Company in light of their experience, current conditions and their expectations of future developments as well as other factors which they believe to be reasonable and relevant. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. Risks and uncertainties that may cause actual results to vary include but are not limited to: changes in equity and debt markets; inflation; uncertainties relating to the availability and costs of financing needed to complete exploration, development and production activities; failure to establish estimated mineral resources or mineral reserves (the Company's mineral resource and mineral reserve figures are estimates and no assurances can be given that the indicated levels of gold will be produced); exploration costs varying significantly from estimates; delays in the exploration and development of, and/or commercial production from, the properties in which the Company has an interest; unexpected geological or hydrological conditions; the speculative nature of mineral exploration and development, including the uncertainty of reserve and resource estimates; operational and technical difficulties, including the failure of major mining and/or milling equipment; the availability to the Company of suitable financing alternatives; the ability of the Company to service its existing debt facilities; fluctuations in gold and other commodity prices; the existence of undetected or unregistered interests or claims, whether in contract or in tort, over the property of the Company; success of future exploration and development initiatives; competition; operating performance of facilities; environmental and safety risks, including increased regulatory burdens, seismic activity, weather and other natural phenomena; inability to, or delays in, obtaining necessary permits and approvals from government authorities; risks relating to labour; and other exploration, development and operating risks; changes to and compliance with applicable laws and regulations, including environmental laws; political, economic and other risks arising from the Company's activities in Russia; fluctuations in foreign exchange rates; and those risks set out in the Company's public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all.
Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
SOURCE: White Tiger Gold Ltd.
For further information:
White Tiger Gold Ltd.
Chief Executive Officer