TORONTO, February 9, 2015 /PRNewswire/ --
(All figures are in US dollars unless
otherwise expressed)
Jaguar Mining Inc. ("Jaguar" or the "Company") (TSX-V: JAG) is
pleased to report that a partial payment of outstanding Federal VAT
("Value-Added-Tax") debt, owed to the Company by the Government of
Brazil, has been received in cash,
in the amount of approximately R$16.7
million (approximately $6
million).
Background
During 2014, the Company initiated procedures to obtain approval
and/or refund of R$29.1 million of
Federal VAT input tax credits with respect to the years 2009
through 2011 for its Mineração Turmalina Ltda. ("MTL") operating
subsidiary. MTL is the operating subsidiary for the Turmalina
Mine.
Following an extensive audit process by the Brazilian tax
authorities, which was concluded in December
2014, 81.6% of the input tax credits were approved for
refund. 29.7% of the approved amount was applied as a credit to
reduce other federal taxes payable for the years 2012 through 2014,
while R$16.7 million (approximately
$6 million) was refunded in cash to
the Corporation.
The Company plans to request additional approvals and refunds of
Federal VAT input tax credits for MTL for the years 2012 through
2014.
Separately, the Company also continues to pursue approval of
Federal VAT input tax credits with respect to the years 2009
through 2011 for its Mineração Serras Do Oeste LTDA ("MSOL")
operating subsidiary. MSOL is the operating subsidiary for the
Caeté complex comprising the Pilar and Roça Grande mines.
Derrick Weyrauch, Chief Financial
Officer of Jaguar Mining Inc., commented: "The receipt of
$6 million of VAT refunds
significantly boosts the Company's liquidity and represents over
40% of the principle outstanding for Company's senior secured debt,
all of which is payable in 2015." Additionally, Mr. Weyrauch stated
"To avoid the current situation, where a large Federal VAT
receivable has accumulated and remained unpaid for an extended
period, management will continue to vigorously pursue collection
and has initiated various administrative changes to accelerate
collection efforts."
About Jaguar Mining Inc.
Jaguar is a gold producer with mining operations in a prolific
greenstone belt in the state of Minas Gerais, Brazil. Additionally, Jaguar wholly owns the
large-scale Gurupi Development Project in the state of Maranhão,
Brazil. In total, the Company owns
mineral claims covering an area of approximate 197,000-hectares.
Additional information is available on the Company's website at
http://www.jaguarmining.com .
FORWARD-LOOKING STATEMENTS
Certain statements in this press release constitute
"Forward-Looking Statements" within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995 and applicable Canadian
securities legislation. Forward-looking statements include, but are
not limited to, management's assessment of Jaguar's future plans
and operation. Certain statements throughout this press release
constitute forward-looking statements (forecasts) under applicable
securities laws relating to
future events or future performance. Forward-Looking Statements
can be identified by the use of words such as "are expected", "is
forecast", "is targeted", "approximately", "plans", "anticipates"
"projects", "anticipates", "continue", "estimate",
"believe"or variations of such words and phrases or
statements that certain actions, events or results "may", "could",
"would", "might", or "will" be taken, occur or be achieved.
Forward-Looking Statements involve known and unknown risks,
uncertainties and other factors, which may cause the actual results
or performance to be materially different from any future results
or performance expressed or implied by the Forward-Looking
Statements such as obtaining further approvals for tax credits or
refunds for the years 2012 through 2014 for MTL, obtaining approval
for tax credits or refunds for MSOL, and that the current situation
whereby credits continue to be accumulated will not
persist.
Forward-looking information is based on current expectations,
estimates and projections that involve a number of risks
and uncertainties which could cause actual results to
differ materially from those anticipated by Jaguar and described in
the forward-looking information. The forward-looking
information contained in this press release is made as of the date
hereof and Jaguar undertakes no obligation to update
publicly or revise any forward-looking information, whether as a
result of new information, future events or otherwise,
unless required by applicable securities laws. The forward-looking
information contained in this press release is
expressly qualified by this cautionary statement.
Forward-Looking Statements involve known and unknown risks,
uncertainties and other factors may cause the actual results,
performance or achievements to be materially different from those
expressed or implied by the forward-looking statements. Such risk
factors include, among others the risk of Jaguar's
not obtaining further approvals for tax credits or
refunds for the years 2012 through 2014 for MTL, not obtaining
approval for tax credits or refunds for MSOL, and that the current
situation whereby credits continue to be accumulated may
persist., as well as those factors disclosed in the
Company's current Annual Information Form and Management's
Discussion and Analysis, as well as other public disclosure
documents, available on SEDAR
at http://www.sedar.com. Although the
Company has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results
not to be as anticipated, estimated or intended. There can be no
assurance that forward-looking statements will prove to be
accurate. The forward-looking statements contained herein are
presented for the purposes of assisting investors in understanding
the Company's plan, objectives and goals and may not be appropriate
for other purposes. Accordingly, readers should not place undue
reliance on forward-looking statements. These Forward-Looking
Statements represent the Company's views as of the date of this
press release. The Company anticipates that subsequent events and
developments may cause the Company's views to change. Factors,
which could cause results or events to differ from current
expectations, include, among other things, actions taken against
the Company by governmental agencies and securities and other
regulators and other factors not currently viewed as material that
could cause actual results to differ materially from those
described in the Forward-Looking Statements. The Company does not
undertake to update any Forward-Looking Statements, either written
or oral, that may be made from time to time by or on behalf of the
Company subsequent to the date of this discussion except as
required by law.
FOR FURTHER INFORMATION PLEASE CONTACT:
Derrick Weyrauch
Chief Financial Officer
+1-416-628-9601
dweyrauch@jaguarmining.com