* Q2 loss C$700,000 vs C$1.3 mln last year
* Exploration costs fall as activity in El Salvador drops
Dec 14 (Reuters) - Canadian gold miner Pacific Rim Mining Corp PMU.TO posted a narrower second-quarter loss, primarily helped by lower expenses.
For the August-October quarter, the company reported a net loss of C$700,000 ($695,100), or 1 Canadian cent a share, compared with a loss of C$1.3 million, or 1 Canadian cent a share, a year ago.
Exploration expenses were C$100,000 lower this year due to a drop in exploration activity in El Salvador, Pacific Rim said. General and administrative expenses for the quarter were C$300,000, compared with C$400,000 last year.
Pacific Rim, whose El Salvador project is mired in a costly dispute with the government over delays in issuing permits, said expenses associated with its U.S.-Central America Free Trade Agreement fell to C$100,000 from C$600,000 last year.
The company, which raised going concern doubts earlier this year, said it believes it will be able to obtain the necessary financing to meet its requirements.
Shares of Vancouver-based Pacific Rim closed at 21 Canadian cents on Monday on the Toronto Stock Exchange. ($1=1.007 Canadian Dollar) (Reporting by Aftab Ahmed in Bangalore; Editing by S. John Tilak) (firstname.lastname@example.org; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: email@example.com))