Rusoro Mining Reports on Recent Positive Changes to the Exchange Rate Policy in Venezuela
12 Enero 2010 - 7:00AM
Marketwired
Rusoro Mining Ltd. - (TSX VENTURE: RML) -
On Friday, January 8th, Venezuela's President Hugo Chavez Frias
decreed a number of financial reforms in a ministerial council
meeting. Venezuela modified its currency exchange controls,
introducing a two tier system devaluating its currency by 20% and
100% respectively, the first such action taken since March 2005, in
an effort to stimulate the Venezuelan economy.
In his speech, President Chavez reported that the Bolivar will
be devalued to 4.3 per US Dollar from 2.15 per US Dollar applicable
to, among others, the mining sector effective immediately. A lower
exchange rate of 2.60 Bolivar per US Dollar will apply for critical
imports such as food and medicine, while the swap FX market will
continue operating.
The effect of raising the exchange rate from 2.15 to 4.30 for
Rusoro's finished product gold inventory of approximately 58,000
ounces increases its value significantly. In addition, the two tier
mechanism establishes an exchange rate of 2.6 Bolivars per US
Dollar to import capital goods, increasing the efficiency of
capital expenditures.
In order to stimulate exports, companies such as Rusoro will be
allowed to use up to 30% of their liquid proceeds from exports to
cover foreign costs, up from 10% which was the previous rule under
the law.
The new changes are expected to have far reaching and positive
effects in terms of Rusoro's future gold sales regimes, in addition
to positive implications regarding the importation of capital items
and key consumables related to its on-going mining operations at
Choco 10 and the VenRus government joint venture mining operation
at Isidora.
The Company will provide further guidance to its shareholders
regarding these positive events as they become known.
Rusoro's CEO, Andre Agapov, reports; "A large measure of some
recent concerns regarding the economic viability of gold sales
mechanisms and capital item imports have now been removed for us by
the Government. We look forward to adopting these recently
announced economic stimulus measures as a matter of routine policy
into our go-forward strategy to build and operate gold mines. This
proactive stance taken by the Venezuelan government should serve to
further demonstrate to the investing public that Rusoro can
effectively and successfully operate gold mines in Venezuela, as
the country's only foreign gold producer"
ON BEHALF OF THE BOARD OF RUSORO MINING LTD.
George Salamis, President
Cautionary Note Regarding Forward-Looking Statements
Except for the statements of historical fact contained herein,
the information presented constitutes "forward looking statements".
Such forward-looking statements, including but not limited to those
with respect to the closing of the offering, involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of Rusoro to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. Such factors include, among other risks, risks related
to the closing of the offering, as well as those factors discussed
in the section entitled "Risk Factors" in Rusoro's Annual
Information Form dated December 12, 2008 as filed on SEDAR.
Although Rusoro has attempted to identify important factors that
could cause actual results to differ materially, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove
to be accurate as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the contents of this
press release, which has been prepared by management.
Contacts: Rusoro Mining Ltd. George Salamis President
604-632-4044 or Toll Free: 1-800-668-0091 604-682-1514 (FAX)
info@rusoro.com www.rusoro.com
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