TORONTO, ON — (Marketwired) — 03/02/16 —
Fourth Quarter and Full Year 2015 Financial and Operation Results
The Company will release its fourth quarter and full year 2015 financial and operational results after the close of business on Thursday, March 24, 2016.
Gold Sales Prepayment
The Company also announces that it has entered into a transaction (the “Transaction”) with Auramet International LLC (“Auramet”), a subsidiary of Auramet Trading LLC, with respect to a prepayment of gold sales for US$12.325 million. The proceeds of the Transaction will be used for the Company’s corporate debt consolidation and working capital.
The Transaction will be repaid in 68 weekly installments of 176.5 ounces of gold commencing on May 3, 2016 and ending on August 15, 2017. The Transaction may be repaid at any time with no prepayment penalties.
The Transaction is guaranteed by the Company’s interests in its San Andres and Sao Francisco operating subsidiaries, the Aranzazu mine and the Serrote da Laje project (both currently on full care and maintenance), and secured by a continuing security interest in all of the Company’s present and future personal property.
In furtherance of the Transaction, the Company has entered into gold purchase agreements in respect of all of the gold ounces produced at the Company’s gold mines. The gold will be sold at market rates for a period of two years from the date of the Transaction.
On February 26, 2016, the authorization from Brazil’s
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This news release contains certain “forward-looking information” and “forward-looking statements”, as defined in applicable securities laws (collectively, “forward-looking statements”). All statements other than statements of historical fact are forward-looking statements. Forward-looking statements relate to future events or future performance and reflect the Company’s current estimates, predictions, expectations or beliefs regarding future events and include, without limitation, statements with respect to about repayment of the Transaction and the closing of the Ernesto/Pau-a-Pique acquisition. Often, but not always, forward-looking statements may be identified by the use of words such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”, “objectives” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions.
Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements in this news release are based upon, without limitation, the following estimates and assumptions: the presence of and continuity of metals at the Company’s Mines at modeled grades; the capacities of various machinery and equipment; the availability of personnel, machinery and equipment at estimated prices; exchange rates; metals and minerals sales prices; appropriate discount rates; tax rates and royalty rates applicable to the mining operations; cash costs; anticipated mining losses and dilution; metals recovery rates, reasonable contingency requirements; and receipt of regulatory approvals on acceptable terms.
Known and unknown risks, uncertainties and other factors, many of which are beyond the Company’s ability to predict or control could cause actual results to differ materially from those contained in the forward-looking statements. Specific reference is made to the most recent Annual Information Form on file with certain Canadian provincial securities regulatory authorities for a discussion of some of the factors underlying forward-looking statements, which include, without limitation, gold and copper or certain other commodity price volatility, changes in debt and equity markets, the uncertainties involved in interpreting geological data, increases in costs, environmental compliance and changes in environmental legislation and regulation, interest rate and exchange rate fluctuations, general economic conditions and other risks involved in the mineral exploration and development industry. Readers are cautioned that the foregoing list of factors is not exhaustive of the factors that may affect the forward-looking statements.
All forward-looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or future events or otherwise, except as may be required by law. If the Company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements.
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