Romarco provides EIS and equipment update; will host conference call
TORONTO, Feb. 20, 2013
TORONTO, Feb. 20, 2013 /PRNewswire/ - ROMARCO MINERALS INC. (TSX: R) (the
"Company") wishes to provide an update with respect to the Environmental
Impact Statement ("EIS") for its 100% owned Haile Gold Mine project in South
Carolina, USA. All dollar amounts in this news release are expressed in U.S.
dollars, unless otherwise stated.
Since the news release dated October 25, 2012, the Company has been meeting
regularly with the US Army Corps of Engineers ("Corps"), the contractor, the
Environmental Protection Agency, and the South Carolina Department of Health
and Environmental Control, as well as consulting parties for continued review
of the submitted hydrology model. As a result of those meetings all parties
agree, and the Corps has requested the Company perform, the following
hydrological tasks to gather additional data to supplement existing data
previously submitted in the permit application:
*Twin three vibrating wire piezometer holes (six new holes).
*Complete an aquifer test and pump for approximately one week with a new
production well and seven monitoring wells. The new aquifer test will
provide additional data for an area where bedrock characteristics are
anticipated to be different from previous testing.
The Company has already received the authorizations to drill and has begun to
twin the vibrating wire piezometer holes and to drill the aquifer well. The
data collection and associated modeling should be completed in the second
The Corps has indicated work is continuing on the writing of the EIS chapters.
Additional information is available on the Corps' www.hailegoldmineeis.com
The Company is pleased to announce it has amended its agreement with Blanchard
Machinery Company ("BMC") for the delivery and final payment for its
Caterpillar ("CAT") mobile mine equipment for its Haile Gold Mine project in
South Carolina. If needed, the amendment extends the delivery schedule and
final payment of approximately $29 million, originally scheduled for September
30, 2013 by six months, with an option to extend a further six months. The
Company will incur a modest fee for the amendment and the extension option and
it will continue to incur a monthly holding cost of approximately $230,000.
The agreement maintains previously agreed pricing, ensures timely delivery of
new equipment with tires, keeps a full warranty in place until delivery, and
allows the Company to defer the majority of the payment in order to conserve
cash, should the need arise. BMC worked with the Company in evaluating other
alternatives and the amended agreement provides the lowest cost alternative
with continued flexibility.
The local dealer for the Company's Hitachi shovel, Flint Equipment Company
("Flint"), is storing the shovel in Savannah, GA. In the current agreement
with Flint, the Company will take delivery of the shovel not later than
February 2014 and the final payment will be approximately $2 million. Flint
recently advised that it would work with the Company to adjust the current
agreement for delivery of the shovel, if needed.
The SAG and Ball mill shells were delivered to South Carolina in late December
2012 and arrived at Haile on January 18, 2013. Progress payments of
approximately $3 million on these are being made in the first quarter of 2013.
Payment of approximately $1.3 million for both mill motors and girth gears is
anticipated in the third quarter of 2013 with final payments of approximately
$1.3 million for other ancillary components delayed until after the start of
The Company is continuing with its cash conservation actions and ended 2012
with $64.8 million of cash and cash equivalents, which was $9.4 million lower
than September 30, 2012. At February 20, 2013, cash was approximately $54
million. The first quarter cash spend is higher than the previous two quarters
of 2012 primarily due to payments for the Ball and SAG mills mentioned above
and annual payments customarily paid in the first quarter of each year.
The Company will hold a conference call on February 21, 2013 at 8:30 am ET
where senior management will provide an update on the EIS and Haile Gold Mine
project. Senior management will also respond to questions from analysts and
To join the call:
*In Canada and the United States - 1-888-231-8191
*International - 647-427-7450
The conference call will be recorded and playback will be available
approximately two hours after the event's completion by dialing toll free in
Canada and the United States 1-855-859-2056 or locally 416-849-0833, passcode
13997766# (available up to February 28, 2013).
About Romarco Minerals Inc.
Romarco Minerals Inc. is a gold development company focused on production
primarily in the US. The Company has completed a positive Feasibility study
and is continuing exploration drilling and permitting for its flagship
project, the Haile Gold Mine in South Carolina.
SOURCE ROMARCO MINERALS INC.
Romarco Minerals Inc.
Dan Symons, Vice President, Investor Relations
Renmark Financial Communications Inc.
Maurice Dagenais 514-939-3989 or via e-mail firstname.lastname@example.org
This entire press release may be accessed via fax, e-mail, Romarco's website
atwww.romarco.com and through CNW Group's website atwww.newswire.ca. All
material information on Romarco Minerals Inc. can be found atwww.sedar.com
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