TORONTO, ONTARIO--(Marketwired - Oct. 9, 2013) - Carpathian Gold Inc. (TSX:CPN) (the "Corporation" or "Carpathian") reports that the commencement of gold production at its wholly owned Riacho dos Machados Project ("RDM" or "Project") located in the state of Minas Gerais, Brazil has been delayed into Q4, 2013. The timing of the first gold pour is pending the commissioning of the mill by a third party group and the wet commissioning of the balance of the gold production line. In the interim, mining continues with ore being stock piled in anticipation of the commencement of operations.
The delay in the start-up of gold production has resulted in the Corporation having a lack of sufficient resources at a time when capital as well as commodity markets are difficult. Consequently, the Corporation's Board of Directors has determined that it is in the best interest of the Corporation to pursue strategic alternatives. The Corporation has retained Origin Merchant Partners and Paradigm Capital Inc. as financial advisors in connection with this process. The various alternatives being considered include, but are not limited to, a business combination with another company, a recapitalization, a sale of the Corporation or its assets, a strategic investment in the Corporation or its subsidiaries by a third party, or any combination thereof.
Carpathian has entered into discussions and has executed confidentiality agreements with a number of interested parties. The Corporation has not set a schedule to complete its evaluation and, at present, there can be no assurance as to what, if any, strategic alternatives might be pursued by the Corporation. The Corporation does not intend to disclose further details with respect to its review of strategic alternatives unless and until its Board of Directors has approved a specific transaction or such disclosure is otherwise appropriate.
In addition, the Corporation, and its wholly owned subsidiary Minercao Riacho dos Machados Ltda, which owns and operates the Project, are holding discussions with Macquarie Bank Limited ("Macquarie") in order to secure any necessary amendments to, and waivers under, the credit facility to facilitate the strategic review process. The Corporation is also in discussions with Macquarie and other parties with a view to providing bridge financing or other forms of financing while these strategic alternatives are considered and long term funding can be secured.
About Carpathian
Carpathian is an exploration and development company whose primary business interest is developing near-term gold production on its 100% owned Riacho dos Machados ("RDM") Gold Project in Brazil, which is currently focused on construction, along with progressing its exploration and development plans on its 100% owned Rovina Valley Au-Cu Project ("RVP") located in Romania.
On a company wide basis, Carpathian currently hosts NI 43-101 proven plus probable reserves of 830,200 ounces of gold (proven reserves of 2,300 Kt at 1.30 g/t Au and probable reserves of 18,500 Kt at 1.23 g/t Au) and NI 43-101 mineral resources (inclusive of reserves) of approximately 8.1 million ounces of gold in the measured plus indicated categories (RVP: 405.9 million tonnes at 0.55 g/t Au for 7.19 million ounces, RDM: 19.36 million tonnes at 1.50 g/t Au for 0.936 million ounces) and approximately 0.9 million ounces of gold in the inferred category (RVP: 26.8 million tonnes at 0.38 g/t Au for 0.33 million ounces, RDM; 9.447 million tonnes at 1.93 g/t Au for 0.587 million ounces), as well as 1.4 billion pounds of copper in the measured plus indicated category (RVP: 405.9 million tonnes at 0.16% Cu) and 97.0 million pounds of copper in the inferred category (RVP: 26.8 million tonnes at 0.16% Cu) (see press releases dated July 17, 2012 and April 6, 2011 for further details on resources and reserves).
The RDM Gold Project is targeted to produce in the order of +/-100,000 ounces of gold per annum with an anticipated goal for the commencement of production in the fourth quarter of 2013. The Rovina Valley Project will enhance Carpathian's growth profile as a mid-tier gold producer.
Mr. Dino Titaro is the qualified person (as defined in National Instrument 43-101) and is responsible for preparing the technical information contained in this news release.
