Roxgold Reports Financial Results for Period Ended October 31, 2012
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 21, 2012) - Roxgold Inc. ("Roxgold" or "the Company") (TSX VENTURE:ROG) wishes to announce the Company's unaudited financial results for the three and twelve months ended October 31, 2012. For complete details of the fourth quarter unaudited Condensed Interim Consolidated Financial Statements and associated Management's Discussion and Analysis, please see the Company's filings on SEDAR (www.sedar.com) or on the Company's web site (www.roxgold.com).
As at October 31, 2012, the Company had cash and cash equivalents of $13,672,614 and net working capital of $12,186,673. The primary use of cash during the three and twelve months ended October 31, 2012 was exploration and evaluation expenditures totaling $11,962,547 and $26,420,226 respectively. Roxgold's net loss for the three and twelve months ended October 31, 2012 totaled $5,154,265 and $18,879,500 respectively (October 31, 2011: $704,695 and $1,959,486 respectively). The increase in the net loss for the current period was primarily due to costs relating to a proxy battle that preceded the Company's Annual General Meeting ("AGM") held on September 25, 2012. A settlement was reached prior to the AGM and during the most recently completed financial quarter the Company recognized $1,882,566 in expenses related to the proxy contest and $1,567,500 in severance related expenses relating to change of control provisions in employee contracts that were triggered by changes at the board level. During the twelve month period the Company recognized $11,941,068 (2011: $1,401,919) in share-based payments relating to stock options granted to employees and former employees, consultants and directors of the Company. The majority of these stock options have now been cancelled.
On October 17, 2012 the Company advised that it would be changing its financial year end from October 31 to December 31 effective immediately. In order to facilitate this change the Company will report a one-time fourteen month transition year covering November 1, 2011 to December 31, 2012. Subsequent to the transition year Roxgold's first full financial year will cover the period January 1, 2013 to December 31, 2013.
Roxgold is a TSX.V listed exploration company with its key asset, the 167 Km2 Yaramoko permit, located in the Hounde region of Burkina Faso, West Africa to the south of and contiguous to SEMAFO's Mana project. Roxgold is focused on further advancing the 55 Zone Project and exploring the rest of the Company's 100% owned Yaramoko permit.
ON BEHALF OF ROXGOLD INC.
Wayne Moorhouse, Chief Financial Officer
This news release may contain forward-looking statements. These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to such future events and conditions could differ materially from those currently anticipated in such statements for many reasons such as: changes in management, changes in general economic conditions and conditions in the financial markets; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.
FOR FURTHER INFORMATION PLEASE CONTACT:
604-682-7305 ext. 227