Palmarejo Gold Corporation Announces its Results for the First Quarter Ended September 30, 2005.LONGUEUIL, Quebec This article is about the central municipality of Longueuil. For the agglomeration city, see Urban agglomeration of Longueuil. Longueuil (English pronunciation [lɑŋˈgɔɪ] -- Palmarejo Gold Corporation (the "Company" or "Palmarejo") (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE:PJO) is pleased to report its results for the first quarter ended September 30, 2005.The unaudited interim financial statements and management's discussion and analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial for the quarter ended September 30, 2005 are available through CCN CCN Cloud Condensation Nuclei CCN Church Communication Network CCN Conseil Canadien des Normes (Standards Council of Canada) CCN Critical Care Nurse CCN Certified Clinical Nutritionist CCN Community Care Network CCN Cyclin Matthews website at http://www.ccnmatthews.com/docs/palm1129.pdf. They are also available on Palmarejo's website (www.palmarejogold.com) and on the Sedar's website (www.sedar.com). Financial Results For the three-month period ended September 30, 2005, the Company incurred a profit of $59,800 or $0.00 per share. Interest income related to the average cash equivalent available to the Company for the three-month period amounted to $17,700. For the three-month period, the Company incurred administrative expenses and business development of $106,900 and $68,700 respectively. These expenses consisted mainly of office, travel and investors relation expenses. Stock based compensation related to options granted to purchase common shares of the Company (see note 6c to the September 30, 2005 Consolidated Financial Statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge ) amounted to $237,100 for the period. The contributed surplus was increased by the same amount. Gain on foreign exchange for the period amounted to $454,700 and resulted mostly from timing differences between the date where investments denominated in US dollars were made and the exchange rate as at September 30, 2005, and from differences in rates from June 30, to September 30, 2005 for monetary items also denominated in US dollars. No income tax provision was accounted for as the net profit resulted from a non-taxable gain on foreign exchange. An analysis of administrative and development expenses totaling $175,600 for the three-month period can be summarized as follows:
Remuneration $93,500
Professional fees, legal, accounting
and other fees $14,600
Investor's relation and traveling expenses $18,700
Insurance, rentals and other office expenses $48,800
-------
$175,600
-------
-------
Consolidated Cash Flows Operating Activities After making adjustments for non-cash items in respect of share based compensation, gain on foreign exchange, and net change in non-cash operating working capital items, cash used in operations totalled $294,100 for the three-month period. Financing Activities During the three-month period ended September 30, 2005, 843,750 warrants and 31,334 options were exercised for a net inflow in·flow n. 1. The act or process of flowing in or into: an inflow of water; an inflow of information. 2. of $1,247,000. Investing Activities During the three-month period, exploration expenditures on the Palmarejo project has amounted to $2,868,800, of which $19,700 for geology, $1,776,600 in drilling and assaying costs, $25,600 for tenement A comprehensive legal term for any type of property of a permanent nature—including land, houses, and other buildings as well as rights attaching thereto, such as the right to collect rent. payments, and $1,046,900 for technical costs and other. However, these costs were covered by advances from Fairview Gold Pty Limited, a 100% owned subsidiary of Bolnisi, for no outlay of cash by the Company. Investments on the property are summarized in the "Consolidated Expenditures on Exploration Projects" statement in the September 30, 2005 Financial Statements. Balance Sheet At September 30, 2005, the Company's assets stood at $20,638,200 compared to $15,492,600 on June 30, 2005, and included $3,527,600 in cash and cash equivalents, and $15,127,000 in exploration projects compared to $2,574,800 and $12,258,200 respectively on June 30, 2005. At September 30, 2005, working capital shows a deficit of $4,225,800, net of current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. amounting to $7,886,500, compared to $1,603,700 on June 30, 2005. As at September 30, 2005, the capital stock amounts to $13,059,800 compared to $11,512,700 on June 30, 2005. The contributed surplus related to warrants and stock base compensation amounts to $4,132,200 and the deficit totals $4,440,200, compared to $4,195,200 and $4,500,000 at the beginning of the period. Exercise of call right on warrants On September 22, 2005, the Company announced its decision to call the warrants issued upon the closing on March 21, 2005 of the Business Combination transaction involving the Company (the "Warrants"). As set forth in the original subscription agreement (See "Financing" below) in respect of the purchase of the warrants of Palmarejo Acquisition which were exchanged for the Warrants, the Company has a call right pursuant to which it can accelerate the exercise of the Warrants any time after June 19, 2005, which is 180 days from December 21, 2004, if the closing price of the Company's common shares is above $1.75 for 20 consecutive trading days In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. . The closing price of the Company's common shares on September 21, 2005 was $2.80 and the closing price has been above $1.75 for 20 consecutive trading days. At that date, there were 3,605,500 Warrants outstanding. As at November 21, 2005, 6,500 Warrants remained unexercised and expired. On November 25, 2005, Bolnisi Gold NL, the Company's majority shareholder, exercised its 12,500,000 warrants. Each warrant was exercisable for one common share of the Corporation at a price of Cdn$1.00 per share. The proceeds were applied to reimburse re·im·burse tr.v. re·im·bursed, re·im·burs·ing, re·im·burs·es 1. To repay (money spent); refund. 2. To pay back or compensate (another party) for money spent or losses incurred. part of the debt due to Fairview Gold Pty Ltd PTY LTD Propriety Limited (company structure in Australia) ., a 100% owned subsidiary of Bolnisi. Bolnisi now beneficially owns 64,750,000 common shares of the Company representing 79.5% of the Company's common shares. 6,250,000 of Bolnisi's shares remain in escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. under the TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. rules. The Company currently has 81,493,834 common shares issued and outstanding. Outlook The Company has liquidity of $3,527,600 as at September 30, 2005 and believes that, together with its controlling shareholder, it will be able to meet its commitments through the financial year ending June 30, 2006. The Company is undertaking exploration and development activities on the Palmarejo area, the principal objective of which is to advance the Palmarejo project through the feasibility process. Activities are currently focused on upgrading the inferred mineral resources Noun 1. mineral resources - natural resources in the form of minerals natural resource, natural resources - resources (actual and potential) supplied by nature to measured and indicated resources, as well as conducting the necessary metallurgical met·al·lur·gy n. 1. The science that deals with procedures used in extracting metals from their ores, purifying and alloying metals, and creating useful objects from metals. 2. , engineering and environmental studies for feasibility. Additional exploration drilling activities aimed at expending the inferred mineral resources are also being carried out. It is currently expected that feasibility study The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented. at Palmarejo will commence in the first quarter of 2006, and take up to 12 months to complete. Subject to the results of the above, this work could be used in the calculation of mineral reserves, and the completion of a feasibility study "A Feasibility Study" is an episode of the original The Outer Limits television show. It first aired on 13 April, 1964, during the first season. It was remade in 1997 as part of the revived The Outer Limits series with a minor title change. . There can be no guarantee that mineral reserves will be defined at the Palmarejo project. In addition to the work on Palmarejo, the Company is also conducting exploration activities in the Trogan exploration area. This work includes an expanded program of core and reverse drilling at Guadalupe/Las Animas, as well as geological mapping, trenching and geochemical in such areas as Los Hundidos, La Patria PATRIA. The country; the men of the neighborhood competent to serve on a jury; a jury. This word is nearly synonymous with pais. (.q.v.) and Victoria, with the objective of finding additional mineral resources in these areas. In addition, the Company has received up to $5,305,900 from the exercise of the financing warrants by November 21, 2005. Further, as described under "Exercise of call right on warrants" above, Bolnisi having exercised its 12,500,000 warrants at a price of Cdn$1.00 per share, the proceeds were applied to reimburse part of the debt due to Fairview Gold Pty Ltd., a 100% owned subsidiary of Bolnisi. Forward-looking statement forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Some of the statements contained in this press release are forward-looking statements. Forward-looking statements are not historical facts, and are subject to a number of risks and uncertainties beyond the Company's control, including statements regarding resources and reserves completion of work program and studies, potential mineralization Mineralization The process by which the body uses minerals to build bone structure. Mentioned in: Rickets mineralization, n the bioprecipitation of an inorganic substance. , exploration results and future plans and objectives of the Company. Resource exploration, development, and operations are highly speculative, characterized char·ac·ter·ize tr.v. character·ized, character·iz·ing, character·iz·es 1. To describe the qualities or peculiarities of: characterized the warden as ruthless. 2. by a number of significant risks, which even a combination of careful evaluation, experience and knowledge may not eliminate, including, among other things, unprofitable efforts resulting not only from the failure to discover mineral resources but from finding mineral deposits which, though present, are insufficient in quantity and quality to return a profit from production. There can be no assurance that such statements will prove to be accurate and actual results could differ materially from those suggested by these forward-looking statements for various reasons discussed throughout the Company's filing statement dated March 14, 2005, and particularly in the section entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: "Risk Factors". Palmarejo Gold Corporation is a gold and silver exploration company with projects in Mexico. Additional information is available on SEDAR (www.sedar.com) and on the Company's website (www.palmarejogold.com). The TSX Venture Exchange does not accept responsibility for the ad equacy or accuracy of this release Palmarejo Gold Corporation (TSX VENTURE:PJO) |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion