TORONTO, ONTARIO — (Marketwire) — 08/14/12 — Rio Novo Gold Inc. (TSX: RN)(TSX: RN.WT) („Rio Novo“ or the „Company“) has today filed its interim operational and financial results for the second quarter ended June 30, 2012. Interim Financial Statements and the accompanying Management-s Discussion and Analysis („MD&A“) have been filed on SEDAR.
During the second quarter of 2012, the Company incurred a loss of US$3.8 million (US$0.03 per share) compared to a net income of US$7.1 million (US$0.06 per share) in the corresponding period of 2011. Among the factors that contributed to the net loss in the period were differences in foreign exchange due to US dollar and Brazilian real exchange rate fluctuations, which resulted in a loss of $1.4 million, and a gain of $1.1 million resulting from a share purchase warrant revaluation.
As at June 30, 2012, the Company had working capital of US$15.1 million, including cash of US$16.3 million.
Corporate Development Highlights
Almas Gold Project Update
Qualified Person
Mr. Brian Arkell, Senior Vice President of Exploration at Rio Novo Gold Inc., is a Qualified Person asset out in the Canadian National Instrument 43-101, and has reviewed and verified the technical content of the information contained in this release.
About Rio Novo
Rio Novo is focused on the acquisition, exploration and development of gold properties in Brazil and Colombia. The Company has Measured & Indicated Resources of 1,143,427 oz and 1,105,201 Inferred oz of gold at two projects in Brazil (Almas and Guaranta), and one in Colombia (Toldafria).
The Company-s goal is to become a producer of gold by bringing into production the Almas Gold Project, located in the State of Tocantins, in 2013. The Almas Project enjoys both established infrastructure and main grid hydropower in a proven and mining-friendly jurisdiction, and is permitted for construction.
This press release contains forward-looking statements. 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 the estimation of mineral resources, exploration results, potential mineralization, potential mineral resources and mineral reserves) are forward-looking statements. Forward-looking statements are often identifiable by the use of words such as „anticipate“, „believe“, „plan“, may“, „could“, „would“, „might“ or „will“, „estimates“, „expect“, „intend“, „budget“, „scheduled“, „forecasts“ and similar expressions or variations (including negative variations) of such words and phrases. Forward-looking statements are subject to a number of risks and uncertainties, many of 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, the price of gold and other risks identified in the Company-s most recent annual information form filed with the Canadian securities regulatory authorities on SEDAR.com. 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.
Contacts: Rio Novo Gold Inc. David Beatty Chief Executive Officer +1 (416) 368-8288
Rio Novo Gold Inc. Julio Carvalho President +55 (21) 3956-5028
Rio Novo Gold Inc. Alex Penha General Manager, Corporate Development +1 (416) 368-1573
