Rusoro Mining News
| ||January 12, 2010|
Rusoro Mining Reports on Recent Positive Changes to the Exchange Rate Policy in Venezuela
| ||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
Tel: 604-632-4044 Fax: 604-682-1514
Toll Free: 1-800-668-0091
Symbol: TSX-V: RML Email: firstname.lastname@example.org
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.
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.
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