TORONTO, Nov. 4, 2011 /CNW/ – Zaruma Resources Inc., (TSX-V: ZMR), (the “Company” or “Zaruma”) today announced that the Company will proceed with the previously approved share consolidation and name change, expected to be effective November 8, 2011. On the effective date, the currently outstanding common shares of the Company will be consolidated on the basis of one new common share for ten existing common shares, and the Company’s name will be changed to “Red Tiger Mining Inc.” In the event that the number of existing common shares held by a shareholder is not evenly divisible by ten, the number of post-consolidation common shares issued to such shareholder shall be rounded up to the next whole number. Red Tiger will trade on the TSX Venture Exchange as a Tier 1 Mining Company, under the stock symbol “RMN”.
The consolidation of the existing shares was approved by the shareholders in July 2010 when the refinancing of the Company was approved. A private placement of US$25 million and a debt financing of US$30 million was completed on July 20, 2011 and as the number of shares that could be outstanding if existing warrants were exercised would exceed 1.1 billion, the Directors considered it appropriate to effect the consolidation of shares at this time. The change of name to “Red Tiger Mining Inc.” will avoid confusion with the existing share certificates and reflects a change from the exploration stage of Zaruma’s development to an operational mining company.
The development of the Company’s Luz del Cobre Copper Project in the State of Sonora, Mexico is on track to be in production by the second quarter of 2012. Major contractors are on site to complete the SX-EW plant, finish the heap leach pad, and complete the pipeline from pad to plant. The designed capacity of the plant is 600 tonnes of copper cathodes per month.
Zaruma Resources Inc. is currently listed on the TSX Venture Exchange, (symbol ZMR) and the Frankfurt Stock Exchange, (symbol: ZMR). Common shares outstanding: 652,320,285.
This News Release contains forward-looking statements which are typically preceded by, followed by or including the words “believes”, “expects”, “anticipates”, “estimates”, “intends”, “plans” or similar expressions. Forward-looking statements are not guarantees of future performance as they involve risks, uncertainties and assumptions.
Neither TSXVenture 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.
