TRADING SYMBOL: TSX: R
TORONTO, Feb. 25, 2013 /PRNewswire/ - ROMARCO MINERALS INC. (TSX: R) (the "Company") is pleased to announce that it has released its results for the fourth quarter and year ended December 31, 2012. The Company's 2012 fourth quarter and year-end financial statements and MD&A are available on SEDAR at www.sedar.com and on the Company's website at www.romarco.com
All dollar amounts in this news release are expressed in U.S. dollars, unless otherwise noted.
Highlights from the results include:
- Cash balance at December 31, 2012 was $64.8 million.
- Cash spend on operating and investing activities was:
- $9.3 million during the three-month period ended December 31, 2012 compared with $16.1 million during the same period in 2011 and $9.8 million in the third quarter of 2012.
- $51.1 million during the twelve-month period ended December 31, 2012 compared with $92.2 million during the same period in 2011.
- Net loss was:
- $3.3 million ($0.01 per share) compared with $3.4 million ($0.01 per share) for the three-month periods ended December 31, 2012 and 2011, respectively.
- $11.9 million ($ 0.02 per share) compared with a $15.7 million ($ 0.03 per share) for the twelve-month periods ended, December 31, 2012 and 2011, respectively.
- The SAG and Ball mill shells were delivered to South Carolina in late December 2012 and arrived at Haile in January, 2013. Progress payments of approximately $3 million on these are being made in the first quarter of 2013.
- On February 20, 2013, the Company announced an amendment of its agreement with Blanchard Machinery Company ("BMC") to extend the delivery schedule for its Caterpillar ("CAT") mobile mine equipment and final payment of approximately $29 million from September 30, 2013 by six months, with an option to extend a further six months.
- During the fourth quarter, the US Army Corps of Engineers ("Corps") advised the Company it would not meet the scheduled date of December 14, 2012 for publishing the Draft Environmental Impact Study ("EIS") in order to edit previously drafted chapters of the EIS to reflect the Company's new mine layout and the need to accurately characterize the potential effect of mining on surface and groundwater. On February 20, 2013, the Company announced an agreement with the Corps on the scope of additional hydrology testing.
- The Company modified its mine layout to avoid direct impacts to wetlands (25% reduction) and streams (32% reduction).
- Detailed project engineering was approximately 76% complete at December 31, 2012.
- Cash conservation actions implemented in 2012 included reduction of exploration drill rigs from 11 to five rigs during the first quarter and a further reduction to three rigs by beginning of the third quarter.
- Drilled approximately 57,500 meters in 2012, and approximately 10,600 meters during the three-month period ended December 31, 2012.
- On February 7, 2012, announced an updated mineral resource estimate containing 71.2 million tonnes at 1.77 g/t for 4.0 million gold ounces of measured and indicated material, and an additional 20.1 million tonnes at 1.24 g/t for 0.8 million gold ounces of inferred material.
- The Company's wholly owned Kershaw Mineral Laboratories ("KML") received accreditation from the Standards Council of Canada ("SCC") in the fourth quarter of 2012.
The resource calculations were completed by Independent Mining Consultants of Tucson, Arizona under the direction of Mr. John Marek, PE, an independent Qualified Person ("Q.P.") pursuant to NI 43-101.
For a full discussion of the Company's sampling, analysis, quality assurance, quality control, and other technical disclosure, please see the Company's NI 43-101 Technical Report filed March 19, 2011 on SEDAR. Romarco's Q.P. under NI 43-101 is James Berry, chief geologist at Haile.
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 exploration drilling and 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.