November 26, 2014
Red Tiger Reports Q3 2014 Results
(Expressed in US dollars except where noted as C$)
Toronto, Ontario, November 26, 2014; Red Tiger Mining Inc., (TSXV:RMN), (the "Company" or "Red Tiger") today reported its financial and operating results for the three and nine months ended September 30, 2014. This press release should be read in conjunction with the Company's unaudited Financial Statements for the three and nine months ended September 30, 2014 and Management's Discussion and Analysis ("MD&A") for the corresponding period, available on the Company's website at www.redtigermining.com and on SEDAR at www.sedar.com.
Temporary Suspension of Mining
Copper recovery from the leaching operations began to decline in September and October. Investigation of the cause has revealed that a sudden and unprecedented occurrence of clay materials has appeared in the ore in the South area of the mine where the last few benches of the slip fault area were being mined. This clay material was mixed with the ore sent to the crusher and onto the leach pad. The mixing of this clay material in the ore, coupled with the dozer spreading this ore on the pads, has resulted in a top layer of low permeability of the heaps built in the past two months.
Mining operations have been suspended temporarily to allow time to improve the permeability of the top ore pads by deep ripping, and changing the leaching solution irrigation from drip to "wobbler" sprinklers. Heap irrigation is continuing which is maintaining the current lower level of copper production while implementing these improvements.
This provides the opportunity to conduct a short drilling program in the North and South pit areas of the mine to provide more information to improve the accuracy of mine production scheduling when mining is recommenced.
Third Quarter Highlights
Nine Month Highlights
Subsequent to September 30, 2014 Events
On November 4, 2014, the Company announced that Mr. Robert Wunder resigned from his position as President and Chief Executive Officer of the Company. Mr. Wunder stepped down for personal reasons, and will also no longer serve as a director of the Company.
On November 4, 2014, the Board of Directors unanimously approved the appointment of Mr. David Lurie, the Company's Chief Financial Officer, to serve as Interim President and Chief Executive Officer. A search is underway for a new President and Chief Executive Officer. During the interim period, the day-to-day operations of the Company will be supervised by Mr. Lurie.
As previously discussed, mining operation have temporarily been suspended in order to improve permeability of the stacked ore on the leach pad, as well as to conduct a small drill program in the mine.
Selected Operational and Financial Information
(1) Prior to the Company declaring commercial production on July 1, 2013, all previous revenues were credited against capitalized project costs.
(2) Total cash costs, average realized price and average realized margin are calculated on post-commercial pounds sold only.
(3) Refer to the section on Non-IFRS Financial Performance Measures at end of the press release. Reconciliation of these measures is described in the MD&A.
Non-IFRS Financial Performance Measures
The Company has included certain non-IFRS measures in this press release, including "total cash cost per copper pound", "average realized price", "average realized margin", "adjusted EBITDA" and "adjusted EBITDA per share". The Company believes these measures, in addition to conventional measures prepared in accordance with IFRS, provide investors an improved ability to evaluate the underlying performance of the Company. The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers.
Refer to pages 11 and 12 of the Company's MD&A for the nine months ended September 30, 2014 for a reconciliation of these measures.
Red Tiger Mining Inc.
320 Bay Street, Suite 1520, Toronto, ON, M5H 4A6
Interim CEO, CFO and Secretary
Tel.: 416-637-1517 x 107
Certain statements contained in this news release constitute "forward-looking information" as such term is used in applicable Canadian securities laws. Forward-looking information is based on plans, expectations and estimates of management at the date the information is provided and is subject to certain factors and assumptions, including, that the Company's financial condition and development plans do not change as a result of unforeseen events, that the Company obtains regulatory approval, future metal prices and the demand and market outlook for metals. Forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking information. Factors that could cause the forward-looking information in this news release to change or to be inaccurate include, but are not limited to, the risk that any of the assumptions referred to prove not to be valid or reliable, that occurrences such as those referred to above are realized and result in delays, or cessation in planned work, that the Company's financial condition and development plans change, delays in regulatory approval, risks associated with the interpretation of data, the geology, grade and continuity of mineral deposits, the possibility that results will not be consistent with the Company's expectations, as well as the other risks and uncertainties applicable to mineral exploration and development activities and to the Company as set forth in the Company's latest management discussion and analysis filed under the Company's profile at www.sedar.com. The Company undertakes no obligation to update these forward-looking statements, other than as required by applicable law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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