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Oracle Mining Files Third Quarter Financial Results
NOV 10, 2011 - 19:25 ET
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 10, 2011) - Oracle Mining Corp. ("Oracle Mining" or the "Corporation") (TSX VENTURE:OMN)(OTCQX:OMCCF)(PINK SHEETS:OMCCF) announces that the Corporation has filed its financial results for the quarter ended September 30, 2011. This media release should be read in conjunction with the unaudited condensed consolidated interim financial statements and notes thereto for the quarter ended September 30, 2011, and the management's discussion & analysis ("MD&A") for the quarter ended September 30, 2011, both available on SEDAR at www.sedar.com.
All financial information for the quarter ended September 30, 2011 is prepared in accordance with International Financial Reporting Standards ("IFRS") and reported in United States dollars unless otherwise noted, including this media release. Please refer to Note 2 and Note 16 of the September 30, 2011 unaudited condensed consolidated interim financial statements for information.
During the quarter ended September 30, 2011, there were several significant advancements made at the Oracle Ridge Copper Mine project, where the Corporation is simultaneously drilling, permitting and designing a processing plant and tailings impoundment to return the mine into production.
During the quarter, the Corporation completed a name change from Gold Hawk Resources Inc. to Oracle Mining Corp. and commenced trading on the OTCQX trading platform in the United States. In addition, Oracle Mining issued additional assay results from the drilling program underway ("Oracle Mining intercepts more high-grade copper at Oracle Ridge", October 19, 2011) that included extensions to existing mineralization zones and discovery of new mineralization zones. Offset drilling to further delineate mineralization continued with a validation drilling program during the quarter. More detail on the progress made on these programs during the third quarter is available in the MD&A.
For the quarter ended September 30, 2011, the Corporation had a net loss of $3.2 million compared to net income of $1.7 million in the 2010 comparative period. Net income in the comparative period was primarily driven by gains of $2.6 million arising from the sale of investments. Net loss in the current period is primarily due to exploration and evaluation expenditures at the Oracle Ridge copper project. The current loss for the quarter ended September 30, 2011 consisted of general and administrative expenses of $1.3 million (2010 - $0.6 million) and $2.3 million in exploration and evaluation expenditures (2010 - $Nil).
As at September 30, 2011, total assets were $35.8 million compared to $46.5 million as at December 31, 2010. The difference resulted from increased expenditures relating to the ongoing development of the Oracle Ridge copper project, including the exploration program, technical studies and permitting activities.
As at September 30, 2011, total liabilities were $4.8 million compared to $5.6 million as at December 31, 2010. They primarily consist of liabilities assumed on the acquisition of the Oracle Ridge copper project, which includes promissory notes payable of approximately $3.3 million. In January 2011, the Corporation settled the total liability outstanding for the purchase of land adjacent to the Oracle Ridge copper property for $0.6 million. Subsequent to the quarter end, in October 2011 the Corporation settled $0.5 million owing on its promissory notes payable.
At September 30, 2011, the Corporation had cash and cash equivalents of $13.1 million, working capital of $11.9 million, and long-term debt of $2.6 million.
About Oracle Mining Corp.
Oracle Mining Corp. (TSX VENTURE:OMN)(OTCQX:OMCCF)(PINK SHEETS:OMCCF) is a Vancouver, Canada-based corporation with a focus on uncovering overlooked deep-value projects to achieve superior shareholder returns. The Corporation is the sole owner and operator of Oracle Ridge Mining LLC and copper mine located 24 km northeast of Tucson, Arizona. Oracle Mining has cash on hand of approximately $10 million, minimal long-term debt and is managed by an experienced team of mining professionals with extensive operating and financial experience.
Forward-looking Statement Disclaimer
This document may contain "forward-looking statements" within the meaning of Canadian securities legislation. These forward-looking statements are made as of the date of this document and Oracle Mining Corp. (hereinafter referred to as the "Corporation") does not intend, and does not assume any obligation, to update these forward-looking statements. Forward-looking statements relate to future events or future performance and reflect management of the Corporation's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, commodity prices, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage.
In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", 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" or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Corporation's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. Although the Corporation 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, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
This media release does not constitute an offer to sell or solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to a U.S. Person unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
FOR FURTHER INFORMATION PLEASE CONTACT:
Oracle Mining Corp.
Mr. Carlos Escribano
Chief Financial Officer
604-689-9282 or Toll-Free: +1-855-689-9282
Oracle Mining Corp.
Mr. Jason Mercier