TORONTO, May 1, 2013 /PRNewswire/ - ROMARCO MINERALS INC. (TSX: R) (the "Company") is pleased to announce it has released its results for the first quarter ended March 31, 2013 ("Q1 2013") and to provide an update of recent activities.
Diane Garrett, President & CEO, stated: "We began implementing cash conservation measures early last year and in light of recent market conditions, additional steps have been taken including suspending all drilling activity. We remain solely focused on progressing through the permitting of the Haile project. Notwithstanding the current gold environment, we are fortunate to possess a high-quality, high-grade, low-cost gold deposit in the U.S. which continues to demonstrate robust economics at current and even lower gold prices."
First Quarter Highlights and Recent Activities
All dollar amounts in this news release are expressed in U.S. dollars, unless otherwise noted.
- On February 20, 2013, the Company reached an agreement with the US Army Corps of Engineers ("Corps") on hydrological tasks to gather additional data to supplement existing data previously submitted in the permit application. Since reaching this agreement the Company has:
- Drilled six holes to twin three existing vibrating wire piezometer holes;
- Conducted an aquifer test after drilling one new production well and seven new monitoring wells;
- Collected the required hydrological data; and
- Submitted the hydrological data to the Corps and its third-party contractor
- Effective April 15, 2013, the Company suspended all drilling activity for its three remaining Company-owned operating drill rigs. Resumption of drilling will be predicated on future funding. The Company continues to engage strict cash conservation measures as it undergoes permitting for the Haile project.
- Cash balance at March 31, 2013 was $49.3 million.
- Cash spend (before foreign exchange effects) during Q1 2013 was $15.4 million (including approximately $5 million for SAG and Ball mill payments, annual payments made during the first quarter, and timing of payments) compared with $17.1 million during the same period in 2012.
- Reported $3.6 million ($0.01 per share) net loss for Q1 2013 compared with $3.5 million ($0.01 per share) during the same period in 2012.
- On February 20, 2013, the Company announced an agreement to extend the delivery schedule of its Caterpillar mobile mine equipment and final payment of approximately $29 million by six months to March 31, 2014 with an option to extend a further six months.
- On March 20, 2013, the Company announced that, in light of market conditions, it would not proceed with its previously announced public offering of common shares and withdrew the related preliminary short form prospectus.
- On April 30, 2013, in response to a recommendation from an organization that advises institutional shareholders, the Company made a further amendment to its Stock Option Plan to be approved by shareholders at its upcoming Annual General and Special Meeting on May 15, 2013. The amendment is very slight and requires that any amendment to the length of an outstanding option would require shareholder approval; previously only such an amendment in respect of an option held by an insider required shareholder approval. The revised Stock Option Plan and the changes are available on www.sedar.com and the Company's website: www.romarco.com.
About Romarco Minerals Inc.
Romarco Minerals Inc. is a gold development company focused on production primarily in the US. The Company has completed a positive Feasibility study and is continuing permitting for its flagship project, the Haile Gold Mine in South Carolina.
This entire press release may be accessed via fax, e-mail, Romarco's website at www.romarco.com and through CNW Group's website at www.newswire.ca. All material information on Romarco Minerals Inc. can be found at www.sedar.com.
SOURCE ROMARCO MINERALS INC.