- Published: 04 February 2009
- Written by Editor
La Mancha Takes Advantage of Strong Gold Prices
La Mancha Resources Inc. (TSX: LMA) (hereinafter "La Mancha" or the "Company") announces that it has implemented a hedging program designed to secure significant cash flow from approximately 34% of its 2009 gold production while maintaining significant exposure to future gold price increases. The program was designed to guarantee a minimum selling price of AUD1,210 and 580 euros per ounce for approximately 50% of La Mancha's combined 2009 attributable production respectively from the Frog's Leg and Ity mines. It is important to note that while secured by a strong minimum selling price, the portion of production covered by the program allows La Mancha to fully benefit from any future rise of up to AUD1,795 and 893 euros in the gold price per ounce for production from the Frog's Leg and Ity mines, respectively.
Michel Cuilhe, President and CEO of La Mancha, commented: "Recent record gold prices in Australian dollars and Euros provide a unique opportunity for proactive gold producers such as La Mancha. With today's program, La Mancha is better positioned than ever to generate its strongest operational cash flows to date while taking yet another step towards profitability. Moreover, the important upside that the program allows will enable La Mancha shareholders to benefit from the current run-up in gold prices up to unprecedented levels."
As mentioned before, the program only applies to 34% of La Mancha's forecast 2009 production.
ABOUT LA MANCHA RESOURCES INC.:
La Mancha Resources Inc. is an international gold producer based in Canada with operations, development projects and exploration activities in Africa, Australia and Argentina. La Mancha's shares trade on the Toronto (TSX) under the symbol "LMA". For more information on the Company, visit its website at http://www.lamancha.ca/.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This press release contains certain "forward-looking statements", including, but not limited to, the statements regarding the Company's future commercial production, future gold prices and the company's future revenues, future operating cash flow and future profitability. 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, exploration risks, risks associated with foreign operations, environmental risks and hazards, uncertainty as to calculation of mineral reserves, requirement of additional financing or additional permits, authorizations or licenses, risks of delays in construction and production and other risks referred to in La Mancha's 2007 Annual Information Form filed with the Securities Commissions, as well as the Toronto Stock Exchange.
SOURCE: La Mancha Resources Inc.