ZRM - Zaruma Resources - Page 5

greate news

When this stock will be listed again it will skyrocket. I am glad i bought lot of shares @ 0.025 and 0.03.

TORONTO, Aug. 6 /CNW/ - Zaruma Resources Inc., (TSXV-ZMR.H), announced today that the Company has received an indicative financing term sheet for a US$30 million copper offtake facility from a major international bank, for the completion of the Luz del Cobre copper project in Sonora, Mexico. The copper offtake facility is a forward contract to deliver 9,984 tonnes of cathode copper over 48 months from the start of commercial production, in exchange for the Bank making a partial pre-payment of US$30m. There is no interest payable on the facility. The facility has price participation terms whereby the Company will receive an additional monthly cash payment for that quantity of copper when LME average prices exceed US$1.90 per pound. In addition, the Company has agreed to sell 150 tonnes of cathodes per month for 48 months at the lesser of the average LME price for that month and US$3.17 per pound. The project has a planned production level of approximately 600 tonnes per month.

The proposed facility is subject to normal due diligence review by the bank, the completion of definitive agreements and the approval of regulatory authorities. Conditions precedent to the closing include without limitation, the proposed equity financing of US$20 million by Gravity Ltd. which was approved by the shareholders on July 19, 2010, the settlement of the debt financing from a subsidiary of Glencore International AG, and a resolution of the outstanding debts to contractors and suppliers. For the due diligence review period, the Company has granted the bank an exclusivity until the earlier of the closing of the facility or December 31, 2010.

This News Release contains forward-looking statements which are typically preceded by, followed by or including the words "believes", "expects", "anticipates", "estimates", "intends", "plans" or similar expressions. Forward-looking statements are not guarantees of future performance as they involve risks, uncertainties and assumptions, including securing additional funding to continue its development programmes.

Zaruma Resources Inc. is listed on the NEX Board of the TSX Venture Exchange (symbol ZMR.H) and the Frankfurt Stock Exchanges, (symbol: ZMR). Common shares outstanding 117,608,747.

Neither 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.

Trading resumes 16 aug. This will be hot play because they will get financing and copper mine will go into production this or next year.

+150% in one day!!!

Trending up again. Rally is not over yet. Tight newsflow will come concerning 30M financing and then finally production next year. All is working out for Zaruma. I am in for the ride up to 0.1 CAD.


Zaruma Resources Announces Increased Bridge Financing from Gravity Ltd.

Sep. 3, 2010 (Canada NewsWire Group) --

TORONTO, Sept. 3 /CNW/ - Zaruma Resources Inc., (TSXV-ZMR.H), (the "Company" or "Zaruma") announces that it has executed an additional promissory note in favour of Gravity Ltd. ("Gravity"), pursuant to which Gravity may advance to the Company up to an additional Cdn$300,000 of debt financing (the "Additional Bridge Financing"), to be advanced in tranches of Cdn$75,000 each.

http://tmx.quotemedia.com/article.ph...m_symbol=ZMR.H

from minesite:

Zaruma Now Has The Financial Backing To Get Luz Del Cobre Into Production, At A Rate Of 600 Tonnes Of Copper Cathode Per Month

By Charles Wyatt

Part 1.

Zaruma is back in business ... and not a moment too soon. Over the last couple of years it had a ghastly time at the hands of Glencore which was actually its partner in the Luz del Cobre copper project in Mexico when things started to go wrong. The brief version is that a subsidiary of Glencore had agreed to loan money sufficient to bring the project into production. Confident in that agreement Zaruma forged ahead with development and was only four months away from production, when it suddenly found that Glencore had decided not to contribute any more funding. This left Zaruma in a pretty pickle as it had spent its own money, in order to maintain the momentum of the operation. With no money in the bank, in October 2008 Zaruma received a notice of default from Glencore’s subsidiary, which was also a part owner of Luz del Cobre. Glencore also demanded repayment of the loan, and it seemed clear that it had effectively found a way to acquire a copper project for nothing.

Agreed, the mining sector was in chaos as a result of the global financial crisis at the time but there was no escaping the impression that Glencore had taken advantage of the difficult conditions to bully a junior company into submission. And it would probably have succeeded if it had not made one big mistake. It underestimated the steely determination of Thomas Utter, chief executive of Zaruma, who was determined to hang on to his company’s flagship asset, which was worth far in excess of the US$23.5 million loan that Glencore had provided. At the time he showed Glencore an internal scoping study which confirmed that a gold leaching operation could be developed using equipment already in place at Luz del Cobre, and that this could generate US$450,000 per month at a US$800 per ounce gold price. It would cost virtually nothing, and could be generating cash flow in five months time.

Like a grumpy old man Glencore showed no interest, nor was there any reaction when Thomas Utter issued a pointed reminder that the two companies were also involved in the Sapo Corrizo exploration project only eight kilometres away from Luz del Cobre, where there was every indication an economic prospect might be developed. The first phase of exploration had been funded by Glencore, which spent US$2.25 million and paid Zaruma US$2 million in cash in return for a 51 per cent interest. There is no way Thomas Utter could have made clearer that the two companies were partners. Again there was no response, so Thomas clearly decided to ignore Glencore in any future plans for his company no matter how unpleasant the threats about repayment. And things were getting more unpleasant by the day, as early in 2009 the TSX threatened to withdraw Zaruma’s listing as the company still had the debt to Glencore hanging over it and no way of funding its listing requirements.

Sure enough in May of this year a Cease Trade Order was issued, but Thomas Utter had not been wasting his time worrying about Glencore. Just a week before trading was suspended he had signed a non-binding memorandum of understanding regarding an equity issue with investment house Gravity Ltd of the USA. Under the terms of this deal Gravity agreed to stump up US$20 million for the financing of the Luz del Cobre copper project, the completion of the feasibility study on the Sapuchi gold project, and for working capital purposes. In addition Gravity agreed to subscribe for up to C$500,000 of a 10 per cent senior unsecured convertible promissory note in three tranches which would also be used for working capital purposes. Zaruma was back in the money and could pay its listing fees and carry out its annual filings once again.

Since then events have accelerated. Trading was restored in August, just a week after Zaruma received an indicative financing term sheet for a US$30 million copper off-take facility from a major international bank. That off-take facility will now allow it to complete construction at the Luz del Cobre copper project. This facility is a forward contract to deliver 9,984 tonnes of cathode copper over 48 months from the start of commercial production, in exchange for the bank making a partial pre-payment, of US$30million. This equates to 208 tonnes per month and given that the planned production level is approximately 600 tonnes per month there’s no great pressure there. In addition there is no interest payable on the facility.

Zaruma retains price participation, as it will receive an additional monthly cash payment for that quantity of copper when LME average prices exceed US$1.90 per pound. The price of copper at the moment is US$3.45 per pound so let’s hope the additional cash payments are generous. In addition, Zaruma has agreed to sell 150 tonnes of cathodes per month for 48 months at the lesser of the average LME price for that month and US$3.17 per pound.

Part 2

Speaking from Mexico Thomas Utter is clearly delighted with his new partners. The partnership has been further cemented by the additional bridge financing offered by Gravity. Gravity has extensive investments in the resource sector and is controlled by Fran Scola a well known US resource investor. If all its warrants are exercised it could end up with a shareholding above 75 per cent and control of the board, but Zaruma shareholders – aware of possible alternatives - have already voted in favour of the financing. The leading European bank that’s got involved is still anonymous, but we know it is a trader in copper, so it does at least understand what it is doing. Now everything has to be signed and sealed, at which point the final development of Luz del Cobre can once again take priority.

Meanwhile, Zaruma still retains 100 per cent of the Sapuchi gold project, and the feasibility there study is likely to take place next year once Luz del Cobre is up and running. No doubt about it, the company has come a long way since Glencore was making Thomas Utter’s life a complete nightmare two years ago.

0.075 now. Very thin ask - only 0.075-0.100 489,000.
As soon as eq. financing with gravity is done this baby will go into copper production next year. Zaruma has also gold property. Hence the new name of company - Zaruma Gold. Soon after debt repayment Zaruma will be relisted on TSX.

Exploded 0.12 today on low volume. Nothing on the ask. No news.

Here we go . Nothing on the ask. Going up on no volume for second day. What will happen if volume will be high?
960,000 volume on bid in the price range 0.080-0.100
356,000 volume on ask in the price range 0.110-0.130

Zaruma Gold Mining Ltd. ("ZGM") has subscribed for an initial placement of 1.5 million units to provide C$75,000 for the Company's immediate needs. ZGM is expected to subscribe for US$20 million in the private placement of US$25 million that is being presented to the shareholders for approval at a Special Meeting of Shareholders being held on December 29, 2010.

Zaruma moving up today on good news. Ibought lot of shares @0.025 CAD, but i am not ready to sell because i think there is still 50% upside. Sentiment is excellent:

Zaruma Resources Shareholders Approve Financing
TORONTO, Dec. 29 /CNW/ - Zaruma Resources Inc., (TSXV-ZMR.H), (the "Company" or "Zaruma") reported that at today's Special Meeting the Shareholders approved a private placement of units consisting of common shares and common share purchase warrants of the Company to raise gross proceeds of up to US$25 million, of which US$20 million may be purchased by Zaruma Gold Mining Ltd. ("ZGM"), or such other person or persons designated by ZGM, as well as a debt financing to raise approximately US$30 million, substantially in accordance with terms previously reported. The financings were approved by more than 99% of the votes cast at the Shareholders' Meeting.

One of the conditions of the private placement is that the Company will have arranged a minimum of US$20 million in new debt financing. The Company is currently completing the negotiation of a US$30 million debt financing with a major international bank in order to fund the settlement of the outstanding debt financing from a subsidiary of Glencore International AG, and the development of the Luz del Cobre Copper Project to production.

The Shareholders also approved a resolution increasing the number of directors to seven and electing two additional directors to fill the vacancies created by such increase, conditional upon completing the equity and debt financings. On completion of the financing ZGM will have a controlling interest in the Company and will have a majority of representatives on the Board of Directors

BID Orders Volume Price Range
16 697,500 0.090-0.110

ASK Price Range Volume Orders
0.120-0.145 473,500 11

Hitting new highs
BID Orders Volume Price Range
18 694,000 0.095-0.115

ASK Price Range Volume Orders
0.140-0.180 378,000 10

New high 0.14.

0.15
Hitting new highs every day on low volume. This was sleeping beauty.