Rusoro Reports 2011 Financial Results and Provides Update on the Nationalization of Its Mining Assets
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 04/30/12 -- Rusoro Mining Ltd. (TSX VENTURE: RML) ("Rusoro" or "the Company") -
Rusoro reports its financial results for the year ended December 31, 2011 and provides update on the Nationalization of its Mining Assets. The Company's audited consolidated financial statements and management's discussion and analysis ("MD&A") for the year ended December 31, 2011 have been filed on SEDAR ().
All amounts set out in this news release and the Company's annual audited consolidated financial statements and MD&A are expressed in United States dollars, unless otherwise stated.
The following is a synopsis of the year ended December 31, 2011 financial results and related information. For detailed information regarding Rusoro's 2011 year-end results, please refer to the audited consolidated financial statements and related MD&A which have been filed on SEDAR at , and can be found on the Company's website at .
Expropriation of the Company's Mining Assets
On September 16, 2011, the Venezuelan government, through publication in the Official Gazette of Venezuela, enacted a law-decree ("the Decree") reserving to the government of Venezuela exclusive rights for the extraction of gold in Venezuela ("the Nationalization"). The Decree mandated the expiration of all mining concession held by the Company and their reversal to the Venezuelan government together with all related assets and operations. The Decree permitted the Company to reach an agreement with the Venezuelan government to continue operating jointly, in the form of a mixed-interest enterprise ("the Mixed Enterprise"), the mining concessions and mining assets affected by the Nationalization and in which the Company could not own more than a 45% share participation. The Decree provided for a 90-day period from September 16, 2011 for the government of Venezuela and the Company to negotiate the terms and conditions of the migration of the Company's mining assets to the Mixed Enterprise, including the compensation to the Company for the loss of ownership of its assets as a result of the Nationalization. This 90-day negotiation period was subsequently extended to March 14, 2012 by the Venezuelan government through decree No. 8683.
As of March 14, 2012, the Company was unable to reach an agreement with the Venezuelan government upon the terms and conditions of the migration of its mining assets to the Mixed Enterprise within the designated time periods. Therefore, effective March 14, 2012 in accordance with the procedures outlined in the Decree, all of the Company's mining concessions expired by force of the Decree and all related assets and operations reverted to the Venezuelan government who took possession and control in accordance with Venezuelan law becoming the new operator and employer.
In accordance to Venezuelan Labor Law and the Decree, beginning March 15, 2012 the Venezuelan government became the sole and exclusive employer for the workers and employees who provide services for the operations of the mining concessions. The Company is not responsible for the actions or omissions of those workers and employees, by the damages that they may cause or suffer in the exercise of their functions or for the payment of their salaries, bonuses, benefits or any other compensation or benefit generated from the above-mentioned date, as all the workers, starting March 15, 2012, provide their services and run their work daily activities under the exclusive direction, supervision and responsibility of the Venezuelan government.
Also starting March 15, 2012, the Company is relieved of all responsibilities associated to the mining concessions, assets and operations that were subject to expropriation, including without limitation, any contractual, mining, environmental, labor or criminal liability, and for the payment of any tax, fee or contribution of any kind, including any mining or surface tax related to such mining concessions and operations.
As a result of the Nationalization, on December 31, 2011 the Company wrote-down to zero the carrying value of its mineral properties and property plant and equipment and significantly wrote-down its inventories and value-added tax (VAT) receivables giving rise to large non-cash losses during 2011. Concurrent with these adjustments the Company fully reversed to income the total balance of deferred tax liability as at December 31, 2011. These adjustments are quantified below under the caption Results for 2011 and Financial Position as at December 31, 2011.
Outlook
As a result of the Nationalization, the Company's sole recourse is to file a Request for Arbitration under the Additional Facility Rules of the International Centre for Settlement of Investment Disputes ("ICSID") against the government of Venezuela alleging violations of the provisions of the Bilateral Treaty for the Protection of Investments entered between the governments of Canada and Venezuela (the "BIT"). The Request for Arbitration cannot be filed by the Company earlier than June 15, 2012 as the BIT requires the parties to resolve the dispute through amicable negotiations within six months from the date on which one party notifies the other of the dispute under the BIT and requests the other to commence such amicable negotiations, which occurred on December 15, 2011 when the Company delivered its notification to the Venezuelan government. In parallel the Company will continue to seek an amicable resolution with the Venezuelan government to reach an agreement for a fair compensation to the Company. The compensation must be monetary or include a monetary component that is appropriate to the Company and a participation in a Mixed Enterprise to jointly operate with the Venezuelan government mining concessions or projects in terms and conditions that are appropriate to the Company. Once the Request for Arbitration is filed, the Company's objective will be to diligently pursue the Arbitration Claim against the Venezuela government and to reduce the Company's general and administration expenses to a minimum so the Company's cash resources are available to fund the costs of the Arbitration Claim. The Company's additional objective is to secure debt financings in the near future to fund the costs of the Arbitration Claim and the Company's minimized general and administration expenses during the period of time that the Arbitration Claim will last as well as settling some of the outstanding liabilities. Additionally the Company's plan is to refinance the Loan all or in part and to enter into arrangements with its main vendors and creditors to restructure its payables.
The Company's highlights for 2011 were:
The Company's highlights subsequent to 2011 were:
Results for 2011 and Financial Position as at December 31, 2011
Cautionary non-IFRS measures
Total cash costs per ounce sold is a non-IFRS measure. The Company believes that, in addition to conventional measures, prepared in accordance with IFRS, certain investors use the cash costs per ounce data to evaluate the Company's performance and ability to generate cash flow. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS as it does not have any standardized meaning prescribed by IFRS. Data used in the calculation of total cash costs per ounce may not conform to other similarly titled measures provided by other precious metals companies.
ON BEHALF OF THE BOARD
Andre Agapov, President & CEO
Forward-looking statements: This document contains statements about expected or anticipated future events and financial results that are forward-looking in nature and as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events, and the Company's capability to execute and implement its future plans. Actual results may differ materially from those projected by management. For such statements, we claim the safe harbour for forward-looking statements within the meaning of the Private Securities Legislation Reform Act of 1995.
"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
Contacts:
Rusoro Mining Limited
Andre Agapov
President & CEO
604-632-4044 or Toll Free 1 800-668-0091
604-632-4045 (FAX)
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 01.05.2012 - 01:19 Uhr
Sprache: Deutsch
News-ID 140857
Anzahl Zeichen: 0
contact information:
Town:
VANCOUVER, BRITISH COLUMBIA
Kategorie:
Mining & Metals
Diese Pressemitteilung wurde bisher 284 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Rusoro Reports 2011 Financial Results and Provides Update on the Nationalization of Its Mining Assets"
steht unter der journalistisch-redaktionellen Verantwortung von
Rusoro Mining Limited (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
