ALBUQUERQUE, New Mexico - November 15, 2013 - Santa Fe Gold Corporation (OTCQB: SFEG) today announced financial results for the quarter ended September 30, 2013. Santa Fe reported revenues of $1.2 million for the three months ended September 30, 2013 as compared to $5.6 million for the same prior year period, a 79% decrease of $4.4 million. Sales for the September 2013 quarter were adversely affected by various equipment issues related to undercapitalization of the Summit mine, which caused a decrease in production output for the period. Tonnage production fell 61% due mainly to increased downtime of primary underground production equipment. Also contributing to the decrease in revenue were lower average prices of gold and silver of 20% and 29%, respectively. The full version of the financial statements and management's discussion and analysis can be viewed on Santa Fe's website at www.santafegoldcorp.com or on EDGAR at www.sec.gov.
Santa Fe has determined to temporarily suspend mining activities while it evaluates financing and strategic alternatives. During the period of suspension, key staff will continue to carry on limited activities. Said Dr. Pierce Carson, President and CEO, "We are in negotiations and advanced discussions with several strategic parties who share our objective to adequately capitalize our operations and bring Summit into full production. As such, we anticipate the suspension of mining operations will be temporary." Dr. Carson added, "We believe that properly capitalized, our Summit mine should attain targeted production levels and achieve attractive operating margins."
As noted in Santa Fe's Form 10-K for its fiscal year ended June 30, 2013, the Company has been exploring various alternatives to refinance its outstanding indebtedness and to provide the additional capital required to place its Summit mine on a sound financial footing. In this regard, the Company has been exploring all available strategic alternatives and has retained Jett Capital Advisors, a New York based investment bank, as its financial advisor. Although Santa Fe is in active discussions and negotiations with several strategic and financial parties, it has not made any decision to pursue any specific strategic or financing transaction or alternative, and there can be no assurance that a transaction will be consummated. If the Company fails to consummate a strategic or financing alternative, it will not have adequate liquidity to fund its operations, meet its obligations (including its debt payment obligations) and continue as a going concern, and will likely be forced to seek relief under the U.S. Bankruptcy Code.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of securities in any jurisdiction in which an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
About Santa Fe Gold
Santa Fe Gold is a U.S.-based mining enterprise with producing mining operations in Lordsburg, New Mexico, and exploration and development projects in southwestern New Mexico, north-central New Mexico and Arizona. Santa Fe controls: (i) the Summit mine and Lordsburg mill in southwestern New Mexico, which began commercial production in 2012; (ii) a substantial land position near the Lordsburg mill, comprising the core of the Lordsburg Mining District; (iii) the Mogollon gold-silver project, within trucking distance of the Lordsburg mill; (iv) the Ortiz gold property in north-central New Mexico; (v) the Black Canyon mica deposit near Phoenix, Arizona; and (vi) a deposit of micaceous iron oxide (MIO) in western Arizona. Santa Fe Gold intends to build a portfolio of high-quality, diversified mineral assets with an emphasis on precious metals.
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To learn more about Santa Fe Gold, visit www.santafegoldcorp.com
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Cautionary Note Regarding Forward-Looking Statements:
This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable US securities legislation. All statements, other than statements of historical fact, included herein are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking statements as a result of various factors, including, but not limited to, variations in the nature, quality and quantity of any mineral deposits that may be located, variations in the market price of any mineral products the Company may produce or plan to produce, the Company's inability to obtain any necessary permits, consents or authorizations required for its activities, the Company's inability to produce minerals from its properties successfully or profitably, to continue its projected growth, to raise the necessary capital or to be fully able to implement its business strategies, and other risks and uncertainties disclosed in the Company's Annual Report on Form 10-K for the year ended June 30, 2012 and its most recent quarterly reports filed with the United States Securities and Exchange Commission (the "SEC"), and other information released by the Company and filed with the appropriate regulatory agencies. All of the Company's US public disclosure filings may be accessed via www.sec.gov, and readers are urged to review these materials.
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