La Mancha Takes Advantage of Strong Gold Prices? Wednesday February 4, 9:42 am ET
MONTREAL - La Mancha Resources Inc. reported 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, located in Australia and Ity mines, in the Ivory Coast. 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.Ó
The companyÕs address is 2001, rue University, bureau 400, ?MontrŽal, QuŽbec ?H3A 2A6, 514-987-5115, fax: 514- 987-5119.