Romarco loses $3.9-million (U.S.) in Q3

2013-11-06 17:45 ET - News Release

Mr. Dan Symons reports

ROMARCO ANNOUNCES THIRD QUARTER 2013 RESULTS

Romarco Minerals Inc. has released its results for the third quarter ended Sept. 30, 2013. The company's third quarter 2013 financial statements and management's discussion and analysis are available on SEDAR and on the company's website. (All dollar amounts in this news release are expressed in U.S. dollars, unless otherwise noted.)

Highlights from the results include:

On Nov. 5, 2013, the company announced that it had arranged a non-brokered private placement financing of approximately 71,678,600 common shares of the company at a price of 35 Canadian cents per offered share for aggregate gross proceeds of $25.1-million (Canadian), which is scheduled to close on or about Nov. 13, 2013.

During October, 2013, the company received the Bureau of Air Quality State construction permit, the National Pollutant Discharge Elimination System permit, and the Dams and Reservoirs safety permit. All three permits are now effective, and each appeal period has closed with no appeal.

During October, 2013, the company entered into an agreement with Cutfield Freeman & Co. Ltd. as its financial adviser with the aim of securing financing for a significant portion of the funds for the Haile gold mine project.

During the month of September, 2013, the Corps informed the company that Cardno Entrix, a third party contractor, had completed the hydrology modelling work associated with the previously announced hydrological tasks (see news release dated Feb. 20, 2013). Based on this now-completed work, modelling and characterization of potential indirect impacts of the project are under way for inclusion in the draft environmental impact statement.

On July 22, 2013, the U.S. Army Corps of Engineers issued a public notice for a community meeting and released the date of the alternatives evaluation report publication. Its environmental impact statement schedule is as set out in the attached table.

                      ENVIRONMENTAL IMPACT STATEMENT SCHEDULE

Alternatives development and evaluation report publication    Completed Aug. 5, 2013
Community meeting                                            Completed Aug. 20, 2013
Draft EIS publication                                                    March, 2014
Draft EIS public hearing                                                 April, 2014
Final EIS publication                                                     July, 2014

On July 10, 2013, the company submitted a revised wetlands and stream mitigation plan that supersedes the previously submitted wetlands and stream conceptual mitigation plan and is built on protection of outstanding aquatic, cultural and historical resources on three parcels of property that the company controls.

Cash balance at Sept. 30, 2013, was $32.7-million.

Cash spend (before foreign exchange effects) was $7.5-million during the three-month period ended Sept. 30, 2013, compared with $9.7-million during the same period in 2012.

The company reported $3.9-million (one cent per share) net loss for the three-month period ended Sept. 30, 2013, compared with a $2.0-million (nil per share) net loss during the same period in 2012.