TORONTO, May 15, 2013 /CNW/ - White Tiger Gold Ltd. ("White Tiger" or the "Company") (TSX: WTG) announced the filing of its interim financial statements ("Financial Statements") and management's discussion and analysis ("MD&A") for the three month period ended March 31, 2013. All figures are quoted in Canadian dollars unless otherwise indicated.
Commenting on the interim financial results, Sergey Yanchukov, CEO of White Tiger, said, "The Company is disappointed with the operating results for the first quarter of fiscal 2013. With the on-going discussions with VTB Capital plc ("VTB") and the delay in funding from the VTB Facility, the Company is continuing to reassess its development strategy."
Highlights for Q1 2013 include:
- Net loss for the period of $4.9 million compared to net loss of $6.7 million for the corresponding period in the previous year;
- Net loss for the period from continuing operations of $4.9 million compared to a net loss from continuing operations of $2.7 million for the corresponding period in the previous year;
- Revenue of $1.2 million for the first quarter of fiscal 2013 compared to revenue of $3.1 million in the first quarter of the previous year;
- Gross profit from continuing operations of $0.4 million compared to a gross profit from continuing operations of $2.3 million for corresponding period in the previous year;
- Gold production of 678 ounces compared to 738 ounces for the first quarter last year; and
- Cash cost per ounce sold for the quarter of $783 compared to $602 for the first quarter last year.
Financial Results for the Quarter ended March 31, 2013
The Company reported an operating loss from continuing operations of $1,531,000 for the three months ended March 31, 2013 compared with an operating loss from continuing operations of $715,000 for the three months ended March 31, 2012. Gross profit from continuing operations for the three months ended March 31, 2013 decreased to $375,000 from $2,349,000 for the three months ended March 31, 2012. Administrative costs for the three months ended March 31, 2013 decreased to $1,669,000 from $2,999,000 for the corresponding period ended March 31, 2012. Net loss from continuing operations after tax and finance costs was $4,918,000 for the three month period ended March 31, 2013, while the Company's net loss from continuing operations after tax and finance costs for the three month period ended March 31, 2012 was $2,715,000.
The increase in net loss after tax and finance costs from continuing operations for the three months ended March 31, 2013 compared with the corresponding period of 2012, results from reduced revenue, higher finance costs, and a foreign exchange loss, offset by reduced administrative expenses. During the three months ended March 31, 2013, the Company incurred financial expenses of $2,382,000 (2012 - $1,892,000) on its loans and borrowings, the most significant increase being interest charges with respect to the VTB Facility and the Unique loans.
For the three months ended March 31, 2013, the Company reported a net loss from discontinued operations of nil, resulting from the deconsolidation of Century. The loss from discontinued operations in the comparable period of 2012 was $3,952,000.
Closing of the Unique Bridge Loan
The Company is pleased to announce the amendment and closing of its previously announced US$12,500,000 bridge loan facility (the "Bridge Loan") from Unique Goals International Limited (the "Lender"), a company beneficially owned, directly or indirectly, by Mr. Sergey Yanchukov, the Chief Executive Officer and Chairman of the Company. The Bridge Loan is unsecured, bears interest at 15% per annum and now matures on August 1, 2013. The Bridge Loan amount will be payable in several advances (each an "Advance"), with each Advance being provided to the Company in accordance with a payments list agreed upon by the parties (the "Payments List"). Subsequent Advances are subject to the Lender approving of the individual Advance and its associated Payments List. The proceeds will be used for working capital and general corporate purposes for the operations of the Company and/or any of its subsidiaries.
The Bridge Loan was previously announced on March 4, 2013. At the time, the Company agreed to a US$1.5 million bridge loan facility from the Lender. The Bridge Loan was unsecured, scheduled to mature on April 15, 2013 and bore interest at 15% per annum. On April 2, 2013, the Company and Unique amended the terms of the Bridge Loan. The loan amount was increased to US$12,500,000 and the maturity date was extended to May 31, 2013. The amended Bridge Loan remained unsecured and bore interest at 15% per annum.
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 Bridge Loan (including the timing of advances thereunder and the terms thereof), the Company's financial position, financial alternatives and the Company's ability to continue operations and the VTB Facility (including the occurrence of an event of default thereunder and its potential effect on 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: the Company's inability to obtain additional financing on acceptable terms or at all; the Company's inability to obtain TSX approval of the Bridge Loan in a timely manner or at all; the Company's ability to negotiate a waiver or agreement with VTB Capital in respect of the event of default under the VTB Facility; 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 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.
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Chief Executive Officer
White Tiger Gold Ltd.