Rusoro Mining News
| ||June 16, 2011|
Rusoro Designates Mining Services Contractor for its Choco Mine
| ||Vancouver, Canada - Rusoro Mining Ltd. ("Rusoro") is pleased to announce that it has entered into an agreement with Vittoria Limited ("Vittoria"), a Barbados privately-owned company, for the provision of mining services at its Choco Mine in Venezuela. The mining services will comprise loading, hauling and dumping of material but excludes drilling and blasting and will be part of a mining service contract ("Mining Service Contract") to be entered into between Rusoro and Vittoria in the upcoming weeks.|
The Mining Service Contract will be for a period of 52 months and the services will be paid at a rate of USD 4.70 per cubic meter of material mined. During the first 16 months of mining services and up to a ceiling of ten million (10,000,000) cubic meters of material mined, the services will be paid with common shares of Rusoro. The shares issuance price for the first ten (10) months of mining services will be CDN $0.60 per common share and for the following six (6) months will be CND $0.75 per common share. The shares will be issued immediately after completion of each period of services and subject to TSX Venture Exchange approval. Any excess of mining services over the cumulative 10,000,000 cubic-meter ceiling will be payable in cash. The USD to CDN exchange rate to be used to determine the number of common shares to be issued will be the one in effect at the time of issuance of the common shares.
Rusoro President and CEO Andre Agapov states, "The Company is very pleased to add the in country expertise and experience of Vittoria as we expand our operations to include Increible 6. Vittoria is a highly respected Company in Venezuela and their operating experience will be invaluable to the Choco operations going forward."
The mining service to be provided for the remaining 36 months of the Mining Service Contract will be payable in cash at the rate of USD 4.70 per cubic meter of material mined.
Vittoria Limited is a privately owned Barbados Company with proved and vast experience in providing logistics and trucking services in Venezuela.
The agreement is subject to TSX Venture Exchange approval.
ON BEHALF OF THE BOARD
Andre Agapov, President & CEO
Forward-looking statements: This document contains statements about expected or anticipated future events and financial results that are forward-looking in nature and as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events, and the Company's capability to execute and implement its future plans. Actual results may differ materially from those projected by management. For such statements, we claim the safe harbour for forward-looking statements within the meaning of the Private Securities Legislation Reform Act of 1995.
"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
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