Petaquilla Minerals Ltd. Announces Lifting of Encumbrances and Production Profile
May 27 2014 - 4:00PM
Marketwired
Petaquilla Minerals Ltd. Announces Lifting of Encumbrances and
Production Profile
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 27, 2014) -
Further to its news release of May 12, 2014, Petaquilla Minerals
Ltd. (TSX:PTQ)(OTCBB:PTQMF)(FRANKFURT:P7Z) ("Petaquilla" or the
"Company") announces that it has executed the early payout of the
existing gold and silver prepayment agreements, as well as the
convertible loan previously negotiated with Deutsche Bank AG and,
consequently, has obtained the full release of all existing
encumbrances on the Company's assets. In addition the Company has
also reduced a significant portion of its short-term liabilities
and re-affirms its commitment to a policy of balance sheet
strengthening by further pursuing opportunities for the reduction
of other current liabilities.
In Panama, Petaquilla plans to ramp up gold production through
plant and leaching operations at its Molejon gold mine to 4,000
ounce per month with an expected cash cost of $850 per Au oz. and
to be cash flow positive in the second quarter of FY 2015. The
Company has sufficient reserves at its Molejon gold deposit to
continue production at that rate for a further five years. In
addition, 152,000 gold ounces slated for leaching are presently
stockpiled at Molejon. A plan to reduce G&A costs and to align
general compensation with the Company's new goals will be
implemented immediately, with further cost-cutting measures to be
introduced at the beginning of the new fiscal year.
Concurrently, Petaquilla is strategically positioning itself for
growth and production in the Iberian Peninsula, focusing in the
near-term on mineral resource expansion and the development of its
Iberian properties. The Company is targeting production in both
Spain and Portugal in the early part of next year and increasing
and sustaining growth thereafter.
About Petaquilla Minerals Ltd. - Petaquilla is a growing,
diversified gold producer committed to maximizing shareholder value
through a strategy of efficient production, targeted exploration
and select acquisitions. The Company operates a surface gold
processing plant at its Molejon Gold Project, located in the south
central area of Panama. In addition, the Company has exploration
operations at its wholly-owned Lomero-Poyatos project located in
the northeast part of the Spanish/Portuguese (Iberian) Pyrite Belt
and several other exploration licenses in Iberia.
Disclaimer. - Certain statements in this press release
constitute forward-looking statements or forward-looking
information within the meaning of applicable securities laws
("forward-looking statements"). Any statements that express or
involve discussions with respect to predictions, expectations,
beliefs, plans, projections, objectives, assumptions, potentials,
future events or performance (often, but not always, using words or
phrases such as "believes", "expects", "plans", "estimates" or
"intends" or stating that certain actions, events or results "may",
"could", "would", "might", "will" or "are projected to" be taken or
achieved) are not statements of historical fact, but are
forward-looking statements. Forward-looking statements relate to,
among other things, the estimation of mineral resources and the
realization of mineral resource estimates; all aspects of the
development and future operation and production of the Molejon gold
mine and the development of other deposits; the outcome and timing
of decisions with respect to whether and how to proceed with such
development and production; the timing and outcome of any such
development and production; estimates of future capital
expenditures; estimates of permitting time lines; statements and
information regarding future feasibility studies and their results;
production forecasts; future transactions; future metal prices; the
ability to achieve additional growth; future production costs;
future financial performance, including the ability to increase
cash flow and profits; future financing requirements; and mine
development plans.
Forward-looking statements are necessarily based upon a number
of estimates and assumptions that, while considered reasonable by
the Company as of the date of such statements, are inherently
subject to significant business, economic and competitive
uncertainties and contingencies. The estimates and assumptions of
the Company contained or incorporated by reference in this news
release, which may prove to be incorrect, include, but are not
limited to, the various assumptions set forth herein as well as:
there being no significant disruptions affecting operations,
whether due to labour disruptions, supply disruptions, power
disruptions, political change, protests by native or environmental
groups, damage to equipment or otherwise; permitting, development,
operations, expansion and acquisitions at the Molejon gold mine and
other deposits being consistent with the Company's current
expectations; prices for gold and silver and costs of labour and
supplies being consistent with expectations; and the accuracy of
the Company's current mineral reserve and mineral resource
estimates. A variety of inherent risks, uncertainties and other
factors, many of which are beyond the Company's control and may be
known or unknown, affect the operations, performance and results of
the Company and its business, and could cause actual events or
results to differ materially from estimated or anticipated events
or results expressed or implied by forward looking statements. Some
of these risks, uncertainties and factors include fluctuations in
the price of gold and silver; the need to recalculate estimates of
resources based on actual production experience; the failure to
achieve production estimates; variations in the grade of ore mined;
variations in the cost of operations; the availability of qualified
personnel; the Company's ability to obtain and maintain all
necessary regulatory approvals and licenses; the Company's ability
to use cyanide in its mining operations; risks generally associated
with mineral exploration and development, including the Company's
ability to develop its deposits; the Company's ability to acquire
and develop mineral properties and to successfully integrate such
acquisitions; the Company's ability to obtain financing when
required on terms that are acceptable to the Company; challenges to
the Company's interests in its property and mineral rights; and
current, pending and proposed legislative or regulatory
developments or changes in political, social or economic conditions
in the countries in which the Company operates; and general
economic conditions worldwide. Forward-looking statements speak
only as at the date of this document. Forward-looking statements
are based on management's current plans, estimates, projections,
beliefs and opinions and, except as required by law, the Company
does not undertake any obligation to update forward-looking
statements should assumptions related to these plans, estimates,
projections, beliefs and opinions change. Readers are cautioned not
to put undue reliance on forward-looking statements.
On behalf of the
Board of Directors of PETAQUILLA MINERALS LTD.
Joao C. Manuel,
Chief Executive Officer
NO STOCK EXCHANGE
HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.
Petaquilla Minerals Ltd.Joao C. ManuelChief Executive
Officer(604) 694-0021 or Toll free: 1-877-694-0021(604)
694-0063www.petaquilla.com