OTTAWA, ONTARIO--(Marketwire - Aug. 7, 2012) - Mazorro Resources Inc. ("Mazorro" or the "Company") (TSX VENTURE:MZO)(FRANKFURT:JAM) is pleased to provide a corporate update on its current status and planned activities. Mazorro currently has a cash position of approximately $300,000 hard (non-flow-through) dollars. Given the challenging financial markets which have significantly impacted most junior exploration company share prices and have limited access to new financing at reasonable valuations, Mazorro has taken several actions to minimize its cash burn rate.
These initiatives include the following:
-- Mazorro has curtailed discretionary spending on promotion activities and
investor relations road shows for a period continuing at least through
the balance of the summer;
-- The Company's CEO has voluntarily reduced his monthly compensation by
$8,000 per month;
-- Mazorro has terminated the Dalquier property option agreement and will
not incur any further exploration costs or option or share payments for
this property. Termination of the Dalquier property option agreement
allows Mazorro to be a purely gold focused exploration company and to
dedicate its resources and focus on the Lapaska gold project in Val
For the Lapaska project, the Company has incurred approximately $1.4 million in exploration expenditures to date. This leaves a balance of approximately $300,000 in exploration expenditures to be incurred in order to vest a 50% ownership interest in the Lapaska project. Under the terms of the Lapaska option agreement completion of these expenditures are required prior to December 31, 2013. The Company plans to initiate a next drilling campaign which would complete the exploration expenditure requirements as soon as market conditions support financing at reasonable valuations.
In other news, the Company has granted Mr. Neil Richardson 250,000 stock options exercisable at $0.10 per stock option. These stock options expire on July 25, 2017 and are subject to the terms and conditions of the Company's stock option plan. Mr. Richardson was recently elected as a director of Mazorro at the Company's annual and special meeting. This grant of stock options is subject to TSX Venture Exchange acceptance.
Mazorro Resources Inc. is a TSX Venture listed, Canadian based, precious metals exploration company that is active in creating value through exploration and development of bulk tonnage and high-grade gold deposits within Canada's Abitibi Gold district. Mazorro has 47,364,773 common shares outstanding.
Some statements in this release may contain forward-looking information. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding potential mineralization) are forward-looking statements. Forward-looking statements are generally identifiable by use of the words "may", "will", "should", "continue", "expect", "anticipate", "estimate", "believe", "intend", "plan" or "project" or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company's ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, failure to establish estimated mineral resources, the possibility that future exploration results will not be consistent with the Company's expectations, changes in world gold markets or markets for other commodities, and other risks disclosed in the Company's public disclosure record on file with the relevant securities regulatory authorities. Any forward-looking statement speaks only as of the date on which it is made and except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement.Neither the TSX Venture Exchange or 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.
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