Apr 26 2014
Carpathian Gold Inc. (the "Corporation" or "Carpathian") is pleased to provide the following update on its RDM gold mine (the "RDM Mine") in Brazil. Re-commissioning of the RDM Mine processing plant, which commenced in mid March following re-instatement of the Autorização Provisória de Operação ("APO" or provisional operating license), is proceeding.
As part of this re-commissioning, gold production has begun and the Corporation is pleased to report that the RDM Mine has to date yielded a total of 3,055 ounces of gold and 900 ounces of silver, which have been shipped to the refinery. It is anticipated that the operation will gradually build up to the planned production target of approximately 8,000 ounces of gold per month, over the next several months, subject to completion of the re-commissioning and plant performance.
However, as a result of the delays in the start up of the mine, and the resulting delay in cash flow, the Corporation's outstanding debt with Macquarie Bank Limited ("Macquarie Bank") now stands at US$154.5 million. It is estimated that further funding will be required before the RDM mine becomes self-sustaining on a cash flow basis. Financing discussions with Macquarie Bank are ongoing. In addition, the continuing efforts to pursue strategic initiatives in conjunction with Macquarie Bank, including various potential restructuring alternatives and the potential sale of the Corporation or some of its assets continue. There is no guarantee that any of these initiatives will result in a satisfactory outcome.
About Carpathian
Carpathian is an exploration and development company whose primary business interest is developing near-term gold production at its 100% owned Riacho dos Machados Gold Project in Brazil. In addition, it is also focussed on advancing its exploration and development plans on its 100% owned Rovina Valley Au-Cu Project located in Romania.
Source: http://www.carpathiangold.com/