TORONTO , Aug. 28, 2013 /CNW/ – Red Tiger Mining Inc., (RMN.V), (the “Company” or “Red Tiger”) today reported that the quarterly unaudited Condensed Interim Consolidated Financial Statements and Management’s Discussion and Analysis report for the three and six months ended June 30, 2013 have been filed on SEDAR, www.sedar.com and on the Company’s website, www.redtigermining.com .

During the three months ended June 30, 2013 , 1,108 tonnes of COMEX Grade 1 copper were produced and sold at an average price of $3.18 per pound. Ore crushed and stacked on the leach pad during the quarter totaled 230,326 tonnes at a grade of 1.50% total copper (“tCu”).

During the six months ended June 30, 2013 , 2,057 tonnes of COMEX Grade 1 copper were produced and sold at an average price of $3.28 per pound.  Ore crushed and stacked on the leach pad during the six months ended Jun 30, 2013 totaled 412,318 tonnes at a grade of 1.25% tCu.

As previously reported, on March 25, 2013 , the Company announced that the Ejido of San Antonio de la Huerta (local land owners) caused an illegal stoppage of the mining and crushing/stacking operations at LdC. On April 5, 2013 , state authorities restored access to all areas of the mine site without major confrontations. Mining, crushing and stacking operations were then resumed. In May 2013 , the Company and the Ejido signed an agreement that extends the lease on the land to December 2018 . The new agreement requires annual payments of 5,880,000 Mexican Pesos ( $470,000 ).

As the project had not reached “Commercial Production” as at June 30, 2013 , sales proceeds net of costs are being credited to the carrying value of the project, and are not considered to be revenue from operations at this stage. On July 3, 2013 , the Company announced that commercial levels of production had been achieved, and that the Company would begin to report revenues and cost of sales on the income statement from July 1 ^st onwards.

The loss for the three months ended June 30, 2013 before the fair value change of derivative liability was $1,309,046 compared to a loss of $1,212,357 for the comparative quarter in 2012. This is a non-IFRS performance measures obtained by excluding a gain on the fair value change of derivative financial instruments of $1,051,133 for the three months ended June 30, 2013 compared to a gain on the fair value change of derivative financial instruments of $11,032,391 for the comparative period in 2012. The net loss was $257,913 for the three months ended June 30, 2013 , as compared to net income of $9,820,034 for the comparative quarter in 2012.

The loss for the six months ended June 30, 2013 before the fair value change of derivative liability was $2,552,723 compared to a loss of $1,663,600 for the comparative period in 2012. This is a non-IFRS performance measures obtained by excluding a gain on the fair value change of derivative financial instruments of $3,389,049 for the six months ended June 30, 2013 compared to a gain on the fair value change of derivative financial instruments of $19,354,727 for the comparative period in 2012. The net income was $836,326 for the six months ended June 30, 2013 , as compared to net income of $17,691,127 for the comparative period in 2012.

On April 16, 2013 , the Company completed a private placement for gross proceeds of Cdn$500,000, consisting on 5,000,000 common shares at a price of $0.10 per common share.  The common shares were subscribed for by a major shareholder of the Company.

On April 16, 2013 , the Company completed a shares-for-debt transaction whereby half of the August and September loans were settled by issuance of 8,750,020 common shares of the Company. The total debt settled was $875,002 , being half of the principal and accrued interest outstanding under the August and September loans. The shares-for-debt transaction was with a major shareholder of the Company.

On April 30, 2013 , the Company completed a private placement for gross proceeds of Cdn$500,000, consisting on 5,000,000 common shares at a price of $0.10 per common share. The common shares were subscribed by a major shareholder of the Company.

On May 16, 2013 , the Company issued 5,000,000 common shares of the Company to the mining contractor in satisfaction of $1,423,024 trade payable, included in the accounts payable balance at December 31, 2012 .

On July 11, 2013 , the Company completed a private placement for gross proceeds of Cdn$500,000, consisting on 2,777,778 common shares at a price of $0.18 per common share. The common shares were subscribed for by a major shareholder of the Company.

The Company has reassessed the accounting for the following:

• Its derivative financial instruments, relating to the copper collar swap and copper call option derivatives. The Company had previously not recorded the fair value of these derivative financial instruments for the years ended December 31, 2012 and 2011.  As a result, the Company’s consolidated statement of financial position and consolidated statement of operations and comprehensive income (loss) did not reflect the appropriate fair value liability and gains (losses) for the years ended December 31, 2012 and 2011.  This has been corrected retrospectively in accordance with IAS 8 – Accounting Policies, Changes in Accounting Estimates and Errors, resulting in the adjustment of current and prior year financial information.
  
• As at December 31, 2012 and 2011, the Company has defaulted on its loan with Deutsche Bank. As part of the loan agreement, the Company must pay all taxes, assessments and government charges as they come due. In the previously filed December 31, 2012 audited consolidated financial statements, the Company had net overdue taxes of $514,000 (2011 – $103,713 ) owing to the Mexico Tax Authorities. As a result, the Deutsche Bank loan was in default as at December 31, 2012 and 2011, resulting in the total outstanding debt balance of $20,545,253 (2011 – $20,393,855 ) having to be presented as a current liability on the consolidated statement of financial position as at December 31, 2012 and 2011. Furthermore, the Gerald Metals loan, the August 2012 Shareholder loans and the September 2012 Shareholder loans are also in default at December 31, 2012 as a result of the Company being in default of the Deutsche Bank loan. The total outstanding debt of the Gerald Metals loan, the August 2012 Shareholder loans and the September 2012 Shareholders loans of $5,303,174 (2011 – $nil) is being presented as a current liability on the consolidated statement of financial position. Previously, the Company recorded the amount between current portion and long-term portion of debt. This has been corrected retrospectively in accordance with IAS 8 – Accounting Policies, Changes in Accounting Estimates and Errors, resulting in the adjustment of current year financial information.

The Company’s restated consolidated financial statements for the years ended December 31, 2012 and 2011 can be found on SEDAR.

Thomas F. Utter, Dipl.-Geol, Dr.phil.nat., (European Geologist) acted as Qualified Person, as defined in NI43-101, with respect to the disclosure of the scientific and technical information contained in this news release.

Red Tiger is listed on the TSX Venture Exchange (symbol “RMN”). The number of shares outstanding is 100,626,335.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 

This news release may contain forward-looking statements, which are subject to risks and uncertainties and other factors that may cause results to differ materially from expectations.  Actual results may vary from the forward-looking information. Factors that could cause actual results to differ materially from the forward-looking information include: disruption to operations, site damage due to extreme weather, and unexpected drop in PLS grade. The production estimate has been extrapolated based on current levels of production. Accordingly, readers are cautioned not to place undue reliance on this forward-looking information.

SOURCE: Red Tiger Mining Inc.