Business
Rusoro continues Venezuelan Consolidation, Acquires Hecla's Venezuelan Assets
Second Tranche of US$80 million financing released Trading symbol (TSX-V): RML VANCOUVER, June 19...
About this update from Rusoro Mining Ltd.
[{"type":"text","content":"\n\n\n\nSecond Tranche of US$80 million financing released\n\n\nTrading symbol (TSX-V): RML\n\n\nVANCOUVER, June 19 /CNW/ - Rusoro Mining Ltd. ("Rusoro") is pleased to\nannounce that it continues to implement its regional consolidation strategy\nwith the acquisition of Hecla Mining Company's ("Hecla") Venezuelan assets\nwhich include the Block B - Isidora mining leases and the La Camorra mill\nfacility in Bolivar State, southeastern Venezuela. Hecla's Venezuelan assets\nare being acquired for US$20 million in cash and 4,273,504 (US$5 million worth\nof) Rusoro shares. The Hecla-Venezuela acquisition is subject to final\nregulatory approval and is expected to close the week of June 23, 2008.\n\n\nAs a result of reaching this strategic milestone, the second tranche of\nRusoro's syndicated US$80 million financing led by Peter Hambro Mining Plc\n("PHM") in the amount of US$52 million has been released.\n\n\nCommenting on the acquisition, Rusoro CEO Andre Agapov states: "The\nHecla-Venezuela acquisition confirms our exceptional growth profile and allows\nus to target an annual production rate of 220,000 ounces per year by the end\nof 2008. We have received strong in-country support for this acquisition and\nwe look forward to employing our Venezuelan expertise to re-energize the\nHecla-Venezuela assets for the benefit of our shareholders and the local\ncommunities."\n\n\nThe Hecla-Venezuela Acquisition\n\n\n-------------------------------\n\n\nThis acquisition provides Rusoro with an immediate and significant\nincrease in gold production, confirming Rusoro as a focused gold company with\nan exceptional growth profile. The key benefits of this transaction to Rusoro\ninclude:\n\n\n- 83% Increase in Gold Production. By the end of 2008, the annualized\n targeted production rate from the Hecla-Venezuela assets is expected\n to be 100,000 ozs/year, bringing Rusoro's aggregate targeted\n annualized production rate to approximately 220,000 ozs/year.\n\n- Exceptional Production Growth Profile. With production capacity\n available at the La Camorra mill as well as production expansion\n plans underway at Choco 10, management expects to increase production\n to 400,000 oz/yr by 2011, subject to the scoping and feasibility\n studies currently underway at Choco.\n\n- Exceptional Regional Synergies to Expedit...