(all numbers are in United States dollars)
TORONTO, June 30 /CNW/ - Zaruma Resources Inc., (TSXV-ZMR.H), (the "Company" or "Zaruma") today reported that it had filed on SEDAR its audited Consolidated Financial Statements for the year ended December 31 2009, along with Management's Discussion and Analysis of the operations for the year, ("Annual Filings"). The reports will also be posted on the Company's website, www.zaruma.com.
The Notice of Annual and Special Meeting of Shareholders and the Management Information Circular were mailed to the shareholders on June 25, and have been posted on SEDAR and the Company's website. The meeting will be held on July 19, 2010 in Toronto, at which time the shareholders will be voting on the previously announced proposed $20 million equity financing for the Luz del Cobre copper project, as set out in detail in the Circular.
The approval of the equity financing will allow the Company to proceed with arranging a debt financing with the aim of settling the outstanding loan, which is in default. If these steps are successful, the Company will have sufficient funding to bring the Luz del Cobre copper project into production in about six months from closing. Shareholders are encouraged to vote their shares in favour of the proposal.
Although it was not possible to continue with the development of the copper project during 2009, the Company completed a calculation of the leachable gold resources at Sapuchi and filed a previously reported (June 16, 2009), Technical Report in accordance with NI 43-101, which contained a resource calculation and a preliminary economic assessment of the Sapuchi project. The projected plan is to produce 25,000 ounces of gold per year at an estimated cash cost of production, (cost before interest, depreciation and taxes) of $440 per ounce, with a capital cost estimated at $10 million. Although the resource is currently only sufficient for four years' production, the intent is to complete a feasibility study after a drill program which will test the three sides of the resource which remain open.
The net loss for 2009 was $ 4,114,000, largely attributable to the expensing of interest and financing costs on the Luz del Cobre during the year, respectively $1,206,000 and $536,000. These costs would normally be capitalized and amortized on a unit of production basis, but until the project is reactivated, these costs along with other holding costs will be expensed. In 2008, the net loss was $4,320,000 which included an impairment cost of $1,843,000 on the Venezuelan project, in recognition of the political inability to obtain a mining permit. The net loss was 3.5 cents per share in 2009 and 3.7 cents per share in 2008.
Corporate expenses in 2009 were $707,000 and in 2008, $849,000.
The Company's shares are currently subject to a cease trade order because it was unable to file its Annual Filings by the required due date. Although this requirement has now been met, the Company needs to file the unaudited quarterly report to the shareholders for the three months ended March 31, 2010 as well, before an application can be made to rescind the cease trade order. This is expected to be done within two weeks.
Zaruma Resources Inc. is listed on the NEX Board of the TSX Venture Exchange, (symbol ZMR.H) and the Frankfurt Stock Exchange, (symbol: ZMR). Common shares outstanding: 117,608,747.
This News Release contains forward-looking statements which are typically preceded by, followed by or including the words "believes", "expects", "anticipates", "estimates", "intends", "plans" or similar expressions. Forward-looking statements are not guarantees of future performance as they involve risks, uncertainties and assumptions, including securing additional funding.
Neither 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.
SOURCE ZARUMA RESOURCES INC.
For further information: For further information: Zaruma Resources Inc., 20 Toronto Street, 12th Floor, Toronto ON, M5C 2B8, Canada, Fax: 416 367 3638, email@example.com, www.zaruma.com; Dr. Thomas Utter, President and CEO, Tel.: +1 521 662 210 5650, firstname.lastname@example.org; Frank van de Water, CFO and Secretary, Tel.: 416 869 0772, email@example.com