TORONTO, ONTARIO--(Marketwired - March 11, 2014) - INV Metals Inc. ("INV Metals" or the "Company") (TSX:INV) is pleased to announce the Company and IAMGOLD Corporation ("IAMGOLD") have agreed to extend the Company's deadline to make $15 million in expenditures on the Loma Larga property ("Loma Larga" or "Property") and also reports its financial results for the year ended December 31, 2013.
Extension of Deadline for Expenditure Commitment
As a condition to the Company's acquisition of Loma Larga, INV Metals committed to incur expenditures of $15 million at the Property over the 18 month period following the acquisition (the "Commitment"). The Company has scaled back expenditures at Loma Larga pending the release of the regulations for the medium-scale mining category, obtaining approval to operate under the medium-scale mining category and receiving positive results from the prefeasibility study ("PFS") currently underway. As a result, INV Metals and IAMGOLD have agreed to amend the share purchase agreement pursuant to which the Company acquired the Property to extend the deadline to meet the Commitment to the earlier of March 6, 2016 or the completion and filing of a bankable feasibility study.
Mr. Robert Bell stated, "We are pleased that IAMGOLD continues to support INV Metals to advance Loma Larga in a prudent and systematic way to ensure our treasury is conserved while we evaluate the economics of the Project and obtain the appropriate approvals from the Ecuadorian government."
2013 Financial Results
The Company recorded a total comprehensive loss of $8,240,916 or $0.02 per share for the year ended December 31, 2013, compared with a total comprehensive loss of $3,218,944 or $0.03 per share for the corresponding period ended December 31, 2012. The Company's cash balance as at December 31, 2013 was $19.1 million, compared to $25.3 million at year end 2012. The decrease in the Company's treasury was a result of corporate expenditures and exploration and evaluation expenses at Loma Larga. Working capital at the end of 2013 was $19.3 million compared to working capital of $25.3 million at December 31, 2012. The Company's 2014 exploration and operating budget is estimated at $4.7 million.
Loma Larga Property, Ecuador
The Company is currently preparing a PFS on the Property. Roscoe Postle Associates Inc. have been engaged to perform the PFS and INV Metals anticipates its completion in the first half of 2014. The PFS will include new resource estimates at higher cut-off grades, capital cost estimates, detailed mine plans, engineering studies and updated environmental studies.
About INV™ Metals
INV™ Metals is an international mineral resource company focused on the acquisition, exploration and development of base and precious metal projects in Ecuador, Namibia, and Brazil. Currently, INV™ Metals' primary assets are: (1) its 100% interest in the Loma Larga (formerly Quimsacocha) gold property in Ecuador, (2) its 35% interest in the Kaoko property, located in Namibia and (3) its 50% interest in the Rio Novo southern claims, located in Brazil.
This press release contains certain forward-looking statements. Forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of INV Metals to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks related to the actual results of current exploration activities, conclusions of economic evaluations including the proposed PFS, risks associated with mining and mineral exploration activities, uncertainty in the estimation of mineral resources, including, without limitation, the assumptions on which such estimates are based, changes in project parameters as plans continue to be refined, uncertainty surrounding metallurgical test results, future prices of metals, economic and political stability in Ecuador, Canada, Namibia and Brazil, the results of discussions with the Ecuador government, environmental risks and hazards, increased infrastructure and/or operating costs, availability of future financing, labour and employment matters, and government regulation. There is no guarantee that any drill targets or economic mineral deposits will be found on INV Metals' properties. For a more detailed discussion of such risks and other factors, refer to INV Metals' annual information form filed with Canadian securities regulators available on www.sedar.com.