Post by Franko10 ™ on Aug 26, 2005 17:18:16 GMT -5
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Morgain Minerals Inc. Reports 2nd Quarter 2005 Financial Results
==============================================
Vancouver, BC, August 25, 2005 -- Morgain Minerals Inc. ("Morgain")
(TSX-V: MGM) reports on its interim financial results and activities
for the second quarter ending June 30, 2005. The following summary
should be read in conjunction with Morgain's unaudited financial
statements and Management Discussion and Analysis available at
www.sedar.com.
Highlights
· Morgain received a permit to mine and process 100,000 tonnes of ore
from its Castillo Mine
located in Durango, Mexico. Mining and stacking ore on the 30,000
tonnes test heap have
started and are proceeding according to plan.
· $159,000 was raised from the exercise of options and warrants.
· $1,100,000 was spent in the development of Castillo, plus $73,000 on
mining equipment.
· Keith Piggott was appointed director of Morgain.
· Subsequent to June 30, 2005, Morgain entered into a Marketing and
Investor
Communications Agreement with Scott F. Gibson & Company Inc. of
Vancouver, British Columbia, pursuant to which Gibson will assist
Morgain in gaining increased exposure to investors, brokers, analysts,
newsletter writers and media. In addition, Gibson will assist
management with strategizing and implementing Morgain's communications
programs.
Results of Operations
Morgain had a net loss of $188,026 in the three months period ending
June 30, 2005 compared with $563,267 for the corresponding period in
2004 and $504,769 for the six months period ending June 30, 2005
compared with $688,455 for the corresponding period in 2004. Mining
activities at the Castillo involved roads and facilities maintenance,
drilling, and pond and drip lines construction with the official start
of the 30,000 tonnes heap leach test as part of an overall feasibility
study recommended by the A.C.A. Howe International Limited report. The
lower loss in the three months period ending June 30, 2005 versus the
corresponding period in 2004 mainly relates to non-cash stock-based
compensation charge of $406,655 and the $94,055 consulting fees paid to
officers and directors of the Company in 2004. No stock-based
compensation charges or consulting fees were recorded during the three
months period ending June 30, 2005. However, during this quarter in
2005, $75,000 in interest expense was accrued on the long term debt.
Office and administration, legal and accounting, trust and filing were
also higher during the three months ending June 30, 2005 compared with
the same period in 2004 as a result of the overall increased corporate
activities.
Capital Resources and Liquidity
As of June 30, 2005, Morgain had $1.4 million in cash and cash
equivalents compared to $1.3 million at the end of 2004. During the
second quarter of 2005, $159,000 was raised from the exercise of
warrants and options. $1.1 million was spent on the Castillo property
mainly on making the scheduled payments in the land agreement, roads
and facilities maintenance, drilling, and pond and drip lines
construction with the start of the 30,000 tonnes heap leach bulk test.
Morgain's budget for the duration of the bulk test is US$3.4 million,
net of gold sales expected to be generated during the test, after which
further financing initiatives will be considered towards expanding the
Castillo into a self sufficient and profitable mining operation. As
Morgain did not have sufficient funds, a loan agreement was signed in
March 2005 whereby H. Morgan & Company would advance Morgain $5.0
million at the rate of 12% per annum, secured by a floating charge on
Morgain's assets and a pledge by Morgain of the shares of its Mexican
subsidiaries. Under the terms of the loan agreement, C$2.5 million was
received in March 2005 and the remaining $2.5 million at a mutually
agreeable future date.
Outlook
Morgain remains focused on developing its 100% owned Castillo project
towards a profitable mining operation. The necessary permit from the
Mexican government to mine and process 100,000 tonnes of ore was
received, and the 30,000 tonnes test heap is now in progress and
proceeding according to plan. Information gained from this test will be
used to plan and seek a permit for the full-scale operation of the
Castillo Mine. Morgain is confident it will meet all of its future
operating and financia l requirements.
About Morgain Minerals Inc.
Morgain Minerals is a resource exploration company with a number of
precious and base metal properties in Mexico. Its corporate strategy is
to explore and develop properties with known resources that can be
further explored to a production status. Visit our website at
www.morgainminerals.com for the latest corporate information.
For further information, please contact:
Chester F. Millar -- Chairman, CEO and President
Telephone: 604-643-1727
The TSX Venture Exchange has neither approved nor disapproved of the
information contained herein.
==============================================
Copyright (c) 2005 MORGAIN MINERALS INC. (MGM) All rights reserved.
For more information visit our website at
www.morgainminerals.com/ or send mailto:info@morgainminerals.com
Message sent on Thu Aug 25, 2005 at 2:32:07 PM Pacific Time
==============================================
Morgain Minerals Inc. Reports 2nd Quarter 2005 Financial Results
==============================================
Vancouver, BC, August 25, 2005 -- Morgain Minerals Inc. ("Morgain")
(TSX-V: MGM) reports on its interim financial results and activities
for the second quarter ending June 30, 2005. The following summary
should be read in conjunction with Morgain's unaudited financial
statements and Management Discussion and Analysis available at
www.sedar.com.
Highlights
· Morgain received a permit to mine and process 100,000 tonnes of ore
from its Castillo Mine
located in Durango, Mexico. Mining and stacking ore on the 30,000
tonnes test heap have
started and are proceeding according to plan.
· $159,000 was raised from the exercise of options and warrants.
· $1,100,000 was spent in the development of Castillo, plus $73,000 on
mining equipment.
· Keith Piggott was appointed director of Morgain.
· Subsequent to June 30, 2005, Morgain entered into a Marketing and
Investor
Communications Agreement with Scott F. Gibson & Company Inc. of
Vancouver, British Columbia, pursuant to which Gibson will assist
Morgain in gaining increased exposure to investors, brokers, analysts,
newsletter writers and media. In addition, Gibson will assist
management with strategizing and implementing Morgain's communications
programs.
Results of Operations
Morgain had a net loss of $188,026 in the three months period ending
June 30, 2005 compared with $563,267 for the corresponding period in
2004 and $504,769 for the six months period ending June 30, 2005
compared with $688,455 for the corresponding period in 2004. Mining
activities at the Castillo involved roads and facilities maintenance,
drilling, and pond and drip lines construction with the official start
of the 30,000 tonnes heap leach test as part of an overall feasibility
study recommended by the A.C.A. Howe International Limited report. The
lower loss in the three months period ending June 30, 2005 versus the
corresponding period in 2004 mainly relates to non-cash stock-based
compensation charge of $406,655 and the $94,055 consulting fees paid to
officers and directors of the Company in 2004. No stock-based
compensation charges or consulting fees were recorded during the three
months period ending June 30, 2005. However, during this quarter in
2005, $75,000 in interest expense was accrued on the long term debt.
Office and administration, legal and accounting, trust and filing were
also higher during the three months ending June 30, 2005 compared with
the same period in 2004 as a result of the overall increased corporate
activities.
Capital Resources and Liquidity
As of June 30, 2005, Morgain had $1.4 million in cash and cash
equivalents compared to $1.3 million at the end of 2004. During the
second quarter of 2005, $159,000 was raised from the exercise of
warrants and options. $1.1 million was spent on the Castillo property
mainly on making the scheduled payments in the land agreement, roads
and facilities maintenance, drilling, and pond and drip lines
construction with the start of the 30,000 tonnes heap leach bulk test.
Morgain's budget for the duration of the bulk test is US$3.4 million,
net of gold sales expected to be generated during the test, after which
further financing initiatives will be considered towards expanding the
Castillo into a self sufficient and profitable mining operation. As
Morgain did not have sufficient funds, a loan agreement was signed in
March 2005 whereby H. Morgan & Company would advance Morgain $5.0
million at the rate of 12% per annum, secured by a floating charge on
Morgain's assets and a pledge by Morgain of the shares of its Mexican
subsidiaries. Under the terms of the loan agreement, C$2.5 million was
received in March 2005 and the remaining $2.5 million at a mutually
agreeable future date.
Outlook
Morgain remains focused on developing its 100% owned Castillo project
towards a profitable mining operation. The necessary permit from the
Mexican government to mine and process 100,000 tonnes of ore was
received, and the 30,000 tonnes test heap is now in progress and
proceeding according to plan. Information gained from this test will be
used to plan and seek a permit for the full-scale operation of the
Castillo Mine. Morgain is confident it will meet all of its future
operating and financia l requirements.
About Morgain Minerals Inc.
Morgain Minerals is a resource exploration company with a number of
precious and base metal properties in Mexico. Its corporate strategy is
to explore and develop properties with known resources that can be
further explored to a production status. Visit our website at
www.morgainminerals.com for the latest corporate information.
For further information, please contact:
Chester F. Millar -- Chairman, CEO and President
Telephone: 604-643-1727
The TSX Venture Exchange has neither approved nor disapproved of the
information contained herein.
==============================================
Copyright (c) 2005 MORGAIN MINERALS INC. (MGM) All rights reserved.
For more information visit our website at
www.morgainminerals.com/ or send mailto:info@morgainminerals.com
Message sent on Thu Aug 25, 2005 at 2:32:07 PM Pacific Time
==============================================