First Nickel Inc. Announces Year-End Results; Restates Q3 2004 Results.
The Company reported a loss of $109,801 ($0.0076 per share) for Fiscal 2004. As the Company was incorporated in November 2003, no comparative results are available. Operating expenses during Fiscal 2004 totalled $254,225, and were composed primarily of legal and audit fees of $59,643, regulatory filing fees of $13,209, salaries and benefits of $87,874, and investor relations costs of $30,022. Interest income earned by the Company during the period on its cash and cash equivalents totalled $88,424. The Company carried on no revenue-generating operations during Fiscal 2004.
As at October 31, 2004, the Company had $11,480,187 in cash and cash equivalents, and working capital of $11,372,714. The Company had no long-term debt as at October 31, 2004.
First Nickel is a junior mining exploration and development company engaged in the acquisition, exploration and development of mineral prospects in Canada. Pursuant to an agreement with Falconbridge Limited ("Falconbridge") dated January 9, 2004, as amended, the Company has acquired a 100% interest in the Dundonald Property located 60 kilometers east of Timmins, Ontario (subject to the terms and conditions described in the Company's Press Release dated June 28, 2004), the right to earn up to a 50% interest in 12 unpatented mining claims located in the Kamiskotia area, northwest of Timmins, Ontario, and has formed a strategic alliance with Falconbridge for the exploration and development of nickel properties located in the western Abitibi Belt. On June 28, 2004 First Nickel completed an initial public offering (the "IPO"), raising gross proceeds of $11,500,000 for the drilling and underground exploration of the Dundonald Property, for the first round of drilling of the Kamiskotia prospects and for the strategic alliance with Falconbridge. As at February 21, 2005, the Company had completed approximately 16,800 meters of diamond drilling on the Dundonald Property and continues to evaluate the economic potential of the nickel deposits on the property.
Elizabeth J. Kirkwood, the President, Chief Executive Officer and a director of the Company, stated "We are pleased with the results which demonstrate First Nickel's strategy to deploy its cash resources into exploration and development activities and minimize general and administrative expenses."
The Company also announced that it has amended and restated its interim financial statements for the three-month period ended July 31, 2004 (the "Q3 2004 Financials"). The Q3 2004 Financials were amended by the Company to properly capitalize certain professional fees relating to the IPO totalling $154,117. The Q3 2004 Financials were further amended to recognize a $46,000 reduction in the Company's future corporate income tax liability. As a result, the Q3 2004 Financials, as amended, now reflect a net loss for the period of $9,812 ($0.003 per share) as opposed to a net loss of $209,930 ($0.012 per share). The Company has re-filed its Q3 2004 Financials, as amended, via SEDAR.
First Nickel's common shares trade on the Toronto Stock Exchange under the symbol "FNI". As at February 21, 2005, a total of 44,058,013 common shares of the Company were issued and outstanding.
First Nickel Inc. (TSX:FNI)
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|Date:||Mar 7, 2005|
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