Eco Oro Provides Corporate Update
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/20/12 -- Eco Oro Minerals Corp. ("Eco Oro" or the "Company") (TSX: EOM) announces an update on recent corporate developments.
Cost Reduction Strategy
As a result of recent prejudicial rulings relating to Eco Oro's principal mining title, concession 3452, and the ongoing delay in defining the boundaries of the proposed Regional Park and Paramo of Santurban, the Company is implementing certain cost reduction initiatives, which include staff reductions and the suspension of further exploration activities, effective immediately. These measures are being implemented with a view to protecting the Company's treasury while it makes a concerted effort and applies suitable resources to work with the Colombian authorities to favorably resolve these issues. Eco Oro expects to complete the prefeasibility study for the Angostura Underground Project by year-end, as previously disclosed.
"For more than 15 years Eco Oro has been acquiring and developing mining concessions in Colombia," stated Joao Carrelo, Eco Oro's CEO & President. "Throughout this period, the Company has also devoted substantial resources to the sustainable development of the communities in which we operate and working with the authorities to deliver value to all stakeholders. As one of the first mining companies to begin exploring in Colombia, we have committed to being a significant part of the country's mining industry with the intent of developing the Angostura Project responsibly. We will continue to comply with all legal requirements and relevant international standards with the expectation that the Colombian authorities will resolve the outstanding matters in a timely manner to avoid any further erosion of value for Eco Oro and its shareholders."
Removal from S&P/TSX SmallCap and Market Vectors Junior Gold Miners Indices
Results were announced following the regular-course annual review of both the S&P/TSX Small Cap Index and the Market Vectors Junior Gold Miners Index. These results indicate that Eco Oro has been removed from both indices, consequently increasing volatility in the market for the Company's shares over the past several days.
The S&P/TSX SmallCap Index provides an investable index for the Canadian small cap market. It includes common stock and is calculated in real-time. Factors affecting eligibility in the index include market capitalization, liquidity and volume weighted average price.
The Market Vectors Junior Gold Miners Index is a rules-based, modified market capitalization-weighted, float-adjusted index intended to give investors exposure to small- and medium-capitalization companies in the gold or silver mining industry.
Company Profile
Eco Oro Minerals Corp. is a publicly-traded precious metals exploration and development company with a portfolio of projects in Colombia. Eco Oro has been focused on its wholly-owned, multi-million ounce Angostura gold-silver deposit, located in northeastern Colombia, for over 15 years during which it has invested over $200 million in the project's development and in that of the surrounding communities. Eco Oro is committed to further advancing the Angostura Underground Project in a socially and environmentally responsible manner that will be beneficial for all stakeholders.
Forward-Looking Statements
Certain statements in this news release are "forward-looking" within the meaning of Canadian securities legislation. They include statements about cost reduction initiatives and timelines and outcomes relating to the determination of boundaries for paramo and of the proposed regional park in the area of the Angostura Project. Forward-looking statements are necessarily based upon the current belief, opinions and expectations of management that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and other contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in the forward-looking statements. These factors include, among others, political influence, government regulation as well as other risk factors set out under the heading "Risk Factors" in the Annual Information Form dated March 26, 2012, which is available on SEDAR at www.sedar.com. Investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
Contacts:
Eco Oro Minerals Corp.
Joao Carrelo
President & CEO
+1 604 682 8212
Eco Oro Minerals Corp.
Fiona Grant Leydier
Director, Investor Relations
+1 604 682 8212
www.eco-oro.com