(all financial figures are in United States dollars)
TORONTO, Aug. 25 /CNW/ - Zaruma Resources Inc., (TSXV-ZMR.H),
(the "Company" or "Zaruma"), today reported that the quarterly
Consolidated Financial Statements and Management's Discussion and
Analysis report for the six and three months ended June 30, 2010 have
been filed on SEDAR, href="http://www.sedar.com/">www.sedar.com
and will be posted on the Company's website, href="http://www.zaruma.com/">www.zaruma.com.
Activity in the second quarter included the due diligence review of the
Company and the Luz del Cobre, ("LdC"), copper project by Gravity Ltd.,
("Gravity"), under a Memorandum of Understanding with regard to an
equity investment of $20 million in common shares of the Company. As
previously reported, the shareholders approved the proposed financing on
July 19, 2010, pursuant to which Gravity would become the controlling
shareholder of the Company. The shareholders also approved a proposed
debt financing of $30 million in order to fund the completion of LdC to
Gravity provided bridge financing of $370,000 during the second quarter
and an additional $114,000 in July under a convertible promissory note.
On August 6, 2010 the Company announced that it had received an
indicative term sheet for a $30 million copper offtake facility from a
major international bank. A due diligence review is currently under
way and the facility is subject to completing the $20 million equity
financing, the settlement of the outstanding debt financing from a
subsidiary of Glencore International AG, and the resolution of the
outstanding debts to contractors and suppliers.
Trading in the Company's shares on the TSXV-NEX Board resumed on August
16, 2010 after filing the required reports which had not been filed by
the required due dates.
The net loss for the six months was $1,113,000 (1 cent per share)
compared to a restated loss of $1,846,000 (1.6 cents per share) for the
same period in 2009. The loss for the quarter was $598,000 compared to
$945,000 in the second quarter of 2009. The 2009 results were restated
to reflect the decision to expense all costs and the interest accruing
on the LdC project debt during the current period of inactivity. The LdC
interest cost for the three months was $276,000, (2009- $319,000), and
for the six months was $543,000 compared to $644,000 in the first half
of 2009. Corporate administrative costs for the six months were $297,000
compared to $370,000 in the same period in 2009.
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 to continue its development
Zaruma Resources Inc. is listed on the NEX Board of the TSX Venture
Exchange (symbol ZMR.H) and the Frankfurt Stock Exchanges, (symbol:
ZMR). Common shares outstanding 117,608,747.
Neither TSXVenture 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, firstname.lastname@example.org, www.zaruma.com