6 months to get the SP back to $1.00 or will be delisted from the NYSE

Jag production continues to decline. In addition to declining 35 percent on a quarter-over-quarter basis, fourth quarter production declined 5.9 percent from 23,026 ounces in Q3-2012 to 21,676 ounces in Q4-2012. On a full year basis production declines are as pronounced as annual gold production dropped 34 percent from 155,764 ounces in 2011 to 102,823 ounces in 2012.

Mine

Q4-2012

Q3-2012

Change

Turmalina

8,206

9,186

-10.7%

Paciancia

0

0

0.0%

Caete

13,470

13,840

-2.7%

Total

21,676

23,026

-5.9%

 

Although a large portion of the declines can be attributed to the company's ongoing cost saving program, which put the Paciancia mine on care and maintenance, continued declines in the Turmalina operation should be concerning

Plus costly credit facility

BELO HORIZONTE, BrazilJan. 25, 2013 /CNW/ - Jaguar Mining Inc. ("Jaguar" or the "Company") (JAG: TSX/NYSE) today announced that it has made an initial draw down of $5 million on its previously announced $30 million standby credit facility (the "Facility") with Renvest Mercantile Bancorp Inc. through its Global Resource Fund (the "Lender").  Consistent with the terms of the Facility, the Lender received an upfront fee and draw down fee together comprising 570,919 shares of Jaguar's common stock and $150,000 in cash.

 

The Lender has advanced the initial draw down as the process to complete registration of the remaining security under the Facility continues to be completed.  The remaining $25 million under the Facility will be available to be drawn down by the Company once certain of the remaining security has been registered.

Jaguar intends to use the proceeds from the initial drawdown and any subsequent drawdowns from the Facility for working capital related to its Turmalina, Paciência or Caeté mining projects in Brazil.

Regarding the initial draw down, Jaguar's President and CEO David Petroff said, "We are pleased to have the financial flexibility this draw down provides while we continue the implementation of our operational improvements.  As we execute as planned, our preference will be to rely on internally generated funds to the greatest extent possible."

glta and do your own DD