La Mancha Resources Inc.

La Mancha Resources Inc.

September 05, 2007 12:51 ET

La Mancha: Short Term Investment Status

All amounts are expressed in CA dollars, unless otherwise indicated.

MONTREAL, QUEBEC--(Marketwire - Sept. 5, 2007) - La Mancha Resources inc. ((TSX:LMA) thereafter "La Mancha" or the "Company") With recent disruptions in global credit markets affecting numerous US and Canadian banks, mutual funds, institutional and private investors and large and junior public companies, La Mancha wishes to advise shareholders of the status of its cash investments.

As of August 31, 2007, La Mancha's cash position stood at approximately $32.0 million, of which $26.8 million were held at the corporate level. In accordance with its investment policy, the Company invested a portion of these moneys in products ranked by Dominion Bond Rating Service ("DBRS") as R-1-High.

On September 4, 2007, La Mancha was informed by two participants in the asset-backed commercial paper ("ABCP") market that they were experiencing market disruption and as a result, were unable to meet their repayment obligations until their liquidity providers fund such repayment.

Two notes held by the Company which were due and payable on September 4, 2007, for $12.0 million remains outstanding as a result of the inability to complete a rollover on the due date because of lack of (temporary) liquidity for asset-based notes.

As of September 5, 2007, La Mancha had access to liquidities totaling $14.8 million to meet its short term requirements. The Company currently has sufficient cash on hand to fund ongoing operations and pursue its project developments assuming that this market disruption is settled in a timely manner.


La Mancha is an international gold producer based in Canada with operations, development projects and exploration activities in Africa, Australia and in Argentina. La Mancha's shares trade on the Toronto (TSX) under the symbol "LMA". For more information on the company, please visit the Company's website at


This press release contains certain "forward-looking statements", including, but not limited to, La Mancha's capacity to fund its short term requirements and the length in time of the current market conditions. Forward-looking statements express, as at the date of this press release, the Company's plans, estimates, forecasts, projections, expectations or beliefs as to future events and results. Forward looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward looking statements include, but are not limited to, factors associated with fluctuations in the market price of precious metals, mining industry risks, risks associated with foreign operations, environmental risks and hazards, fluctuations in the Canadian capital markets, uncertainty as to calculation of mineral reserves and other risks referred to in La Mancha's 2006 Management Information Circular filed with the Securities Commissions of all provinces in Canada, as well as the Toronto Stock Exchange.

Contact Information