TRADING SYMBOL: TSX: R
TORONTO, Sept. 12, 2011 /PRNewswire/ - ROMARCO MINERALS INC. (TSX: R) (the "Company") is pleased to report it has secured delivery of the majority of the long-lead time mobile mine fleet and the primary and secondary grinding mills for the process plant.
Diane Garrett, President and CEO commented, "With significant support from our suppliers we have secured the majority of the long lead time critical equipment with modest upfront cash requirements. This also ensures we will have tires for our mobile mining fleet, with firm pricing. We are especially pleased with the support Blanchard Machinery Company is providing for the selected Caterpillar equipment."
Blanchard Machinery Company ("BMC"), the local Caterpillar dealer, will provide delivery of the Caterpillar equipment that was previously targeted for delivery in late 2011 or early 2012, on a revised schedule aligned with the expected start-up of construction in early 2013. The Company will incur monthly expenses of approximately $0.2 million for BMC to maintain the inventory. This agreement locks in the previously agreed pricing, ensures timely delivery of new equipment with tires, and allows the Company to defer the majority of the payment until the earlier of March 31, 2013, or when the equipment is delivered to Haile. The Company also re-scheduled delivery and payment for the Hitachi shovel until the fourth quarter of 2012. The Company currently expects it will secure the balance of the mobile mine fleet on a timely basis with the majority of the payments tied with delivery in late 2012 or early 2013.
The Company, with the assistance of M3 Engineering & Technology Corporation ("M3"), the organization selected for engineering, procurement and construction management ("EPCM") services for the project, has selected Polysius Corporation to supply the primary SAG and secondary Ball grinding mills for delivery on a schedule aligned with the expected start-up of construction in early 2013. Progress payments are based on milestones with the majority of the payment due upon shipment in late 2012. The Company expects to select the ultra-fine grinding mills supplier in the fourth quarter of 2011.
Total deposit and milestone payments for the secured equipment approximate $5 million over the last four months of 2011. Milestone and maintenance payments for the equipment during 2012 approximate $5 million with final payments in late 2012 or early 2013 of approximately $36 million. All dollar amounts in this news release are expressed in U.S. dollars.
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 and permitting for its flagship project, the Haile Gold Mine in South Carolina.
This Press Release contains "forward-looking information" that is based on Romarco's expectations, estimates and projections as of the date those statements were made. This forward-looking information includes, among other things, statements with respect to the Company's expectations as to the timing for commencement of operations. Generally, this forward-looking information can be identified by the use of forward-looking terminology such as "outlook", "anticipate", "project", "target", "believe", "estimate", "expect", "intend", "should", "scheduled", "will", "plan" and similar expressions. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Romarco's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, and developed based on assumptions about such risks, uncertainties and other factors set out herein, including but not limited to:
- assumptions regarding the need for further financing and uncertainties related to the cost, timing or availability of such financing;
- risk that the Company may be unable to secure further capital necessary to carry out its operations;
- uncertainties relating to the ability of the Company to secure the various permits to conduct its current and anticipated future operations;
- uncertainties relating to actual capital costs, operating costs and expenditures, production schedules and economic returns;
- risks associated with Romarco's operations being subject to significant environmental laws and regulations, including change in governmental regulation; and
- risks associated with the limited operating history of the Company and the lack of history of earnings, positive cash flow or dividend payments.
A discussion of these and other factors that may affect Romarco's actual results, performance, achievements or financial position is contained in the filings by Romarco with the Canadian provincial securities regulatory authorities, including Romarco's Annual Information Form. Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to the continued operation of Romarco's mining operations, no material adverse change in the market price of commodities, that the mining operations will operate in accordance with Romarco's public statements and achieve its stated production outcomes, and such other assumptions and factors as set out herein. Although Romarco has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate. Accordingly, readers should not place undue reliance on forward-looking statements. Romarco disclaims any intent or obligations to update or revise publicly any forward-looking statements whether as a result of new information, estimates or options, future events or results or otherwise, unless required to do so by law.
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.