Business
Rusoro to Acquire Gold Fields' Venezuelan Assets to become Immediate Producer
Rusoro to Acquire Gold Fields' Venezuelan Assets to become Immediate Producer.
About this update from Rusoro Mining Ltd.
[{"type":"text","content":"\n\n\n\n/NOT FOR DISTRIBUTION TO A US NEWSWIRE SERVICE OR FOR DISSEMINATION IN\n\n\nTHE UNITED STATES/\n\n\nOvernight marketing agreement signed to raise a minimum of $160 million\n\n\nTrading symbol (TSX-V): RML\n\n\nVANCOUVER, Oct. 11 /CNW/ - Rusoro Mining Ltd. ("Rusoro"), is pleased to\nannounce that it has agreed with Gold Fields Netherlands Services BV ("Gold\nFields"), a wholly-owned subsidiary of Gold Fields Limited (JSE:GFI, NYSE:GFI)\nwhereby Rusoro will acquire all of Gold Fields' Venezuelan assets, including\nthe producing Choco 10 mine situated in the El Callao district of Bolivar\nState, Venezuela.\n\n\nThis strategic business combination provides Rusoro with immediate gold\nproduction and confirms Rusoro as a focused gold company with an exceptional\ngrowth profile. The business combination provides Rusoro with the following\nbenefits:\n\n\n - Immediate Production. Choco 10 has been operational since 2006 and\n the annualized targeted production for the combined assets is\n 150,000 ounces per year by the end of 2008.\n\n - Significant Expansion Opportunities. Choco 10 is designed to allow\n significant capacity expansion.\n\n - Exceptional Regional Synergies. Choco 10 is approximately\n four kilometres from Rusoro's Increible 6 development property. The\n combination also contributes over 25,000 hectares of highly\n prospective exploration properties in the El Callao Region.\n\n - Unlocking Venezuelan Value. Rusoro's proven ability to operate in\n Venezuela will enable the company to unlock further value from these\n Venezuelan assets.\n\n - Regional Consolidation. Rusoro is well financed with approximately\n CDN$50 million in cash and is well placed to continue its regional\n consolidation strategy.\n\n - Significantly Increased Reserve and Resource Base. The combined\n company's Measured and Indicated Resources will total 6.6 million\n attributable ounces with additional Inferred Resources of\n 6.2 million attributable ounces. Choco 10 has 1.7 million\n attributable Reserve ounces, which are included in the Resource\n ounces described above.\n\n\nUpon completion of the acquisition, Rusoro's management plans to use its\nVenezuelan operating experience to resolve certain hurdles encountered by Gold\nFields at Choco 10. Rusoro's focus over the next 12 to 24 months at Choco 10\nwill be to optimize...