Toronto, Ontario / TheNewswire / March 2, 2017 – Red Tiger Mining Inc. (TSXV: RMN) (“Red Tiger” or the “Company”) announces that it is currently in violation of certain loan covenants under its senior secured loan with Gerald Metals S.A. To date, the Company has not obtained waivers for these covenant violations. As at the end of the third quarter of 2016, the Company owed Gerald Metals approximately $18.7 million under the loan agreement.
Last December, the Company ceased mining operations at the Luz del Cobre copper mine. The Company made this decision after completing an infill drilling program designed to better delineate the oxide-sulphide copper boundary in the north and south pits. The results of the drill program demonstrated continued copper mineralization, however the portion of acid-soluble copper above cutoff remaining within the pit limits appeared to be insufficient to continue the mining operation given the recoveries being realized over the preceding months.