Owner
Post by Franko10 ™ on Dec 1, 2005 7:07:51 GMT -5
Morgain Minerals Inc. Reports 3rd Quarter 2005 Financial Results
17:00 EST Wednesday, November 30, 2005
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 30, 2005) - Morgain Minerals Inc. (the "Company") (TSX VENTURE:MGM) reports on its interim financial results and activities for the third quarter ending September 30, 2005. The following summary should be read in conjunction with the Company's unaudited financial statements and Management Discussion and Analysis which are available at www.sedar.com.
Highlights
- Morgain received $1.0 million from H. Morgan & Company pursuant to the long term loan agreement previously announced.
- $232,000 was raised from the exercise of warrants.
- $1,510,000 was spent on the Castillo property with $1.1 million directly on the ongoing heap leach bulk test and the rest on scheduled property payments. Another $78,000 was spent in the acquisition of capital assets for the mine.
- Morgain entered into an option agreement on its Cuatro Hermanos property whereby C.H. Copper International Ltd. can earn a 100% interest on the property.
- Subsequent to September 30, 2005: (a) Morgain received the remaining $1.5 million under the $5.0 million long term debt agreement with H. Morgan & Company; a letter agreement was signed between Morgain and Alamos Gold Inc. whereby Alamos agreed to sell to Morgain its La Fortuna Property in Durango, Mexico; and (b) Morgain acquired 1,000,000 common shares in the capital of Aurogin Resources Ltd. (TSX VENTURE:AUQ) at a price of $0.15 per share ($150,000) by way of private placement.
Results of Operations
Morgain had a net loss of $335,001 in the three month period ending September 30, 2005 compared with $173,801 for the corresponding period in 2004 and $770,297 for the nine months period ending September 30, 2005 compared with $862,256 for the corresponding period in 2004. Mining activities at the Castillo property mainly involved drilling, leaching and metallurgy. To date 18,200 tonnes of relatively soft ore have been placed on the first test pad and have now been fully leached. Another 8,300 tonnes of the harder ore, which appears to have a slightly better grade, have been placed on the second pad and leaching is close to completion.
The higher loss in the three months period ending September 30, 2005 versus the corresponding period in 2004 mainly relates to non-cash stock-based compensation charge of $182,630 and the amortization of $26,061 on capital assets. For the quarter ending September 30, 2004, the stock-based compensation expense amounted to only $86,130 and there was no amortization expense. Legal, audit, accounting and property investigation expenses were also higher during the three months ending September 30, 2005 compared with the same period in 2004 as a result of the overall increased corporate activities.
Capital Resources and Liquidity
As of September 30, 2005, the Company had $737,000 in cash and cash equivalents compared to $1.3 million at the end of 2004. During the third quarter of 2005, $1.0 million was received from H. Morgan & Company pursuant to the long term loan agreement and $232,000 was raised from the exercise of warrants. $1.5 million was spent on the Castillo property mainly on drilling and leaching for the ongoing heap leach bulk test and on scheduled payments under the land acquisition agreements. Cash on hand and income anticipated from gold sales will be insufficient to meet all Morgain's future cash requirements and it will be dependent upon its ability to raise additional funds in the capital markets.
Outlook
Morgain Minerals Inc. remains focused on advancing the Castillo project towards a profitable mining operation. The heap leach bulk test is in full swing and proceeding according to plan. The information gained from this test will be used to plan and seek a permit for the full-scale operation of the Castillo Mine and to obtain the additional financial resources that will be required.
FOR FURTHER INFORMATION PLEASE CONTACT:
Morgain Minerals Inc.
Chester F. Millar
Chairman and President
(604) 643-1727
(604) 643-1726 (FAX)
morgain@telus.net
www.morgainminerals.com
The TSX has neither approved nor disapproved of the information contained herein.
17:00 EST Wednesday, November 30, 2005
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 30, 2005) - Morgain Minerals Inc. (the "Company") (TSX VENTURE:MGM) reports on its interim financial results and activities for the third quarter ending September 30, 2005. The following summary should be read in conjunction with the Company's unaudited financial statements and Management Discussion and Analysis which are available at www.sedar.com.
Highlights
- Morgain received $1.0 million from H. Morgan & Company pursuant to the long term loan agreement previously announced.
- $232,000 was raised from the exercise of warrants.
- $1,510,000 was spent on the Castillo property with $1.1 million directly on the ongoing heap leach bulk test and the rest on scheduled property payments. Another $78,000 was spent in the acquisition of capital assets for the mine.
- Morgain entered into an option agreement on its Cuatro Hermanos property whereby C.H. Copper International Ltd. can earn a 100% interest on the property.
- Subsequent to September 30, 2005: (a) Morgain received the remaining $1.5 million under the $5.0 million long term debt agreement with H. Morgan & Company; a letter agreement was signed between Morgain and Alamos Gold Inc. whereby Alamos agreed to sell to Morgain its La Fortuna Property in Durango, Mexico; and (b) Morgain acquired 1,000,000 common shares in the capital of Aurogin Resources Ltd. (TSX VENTURE:AUQ) at a price of $0.15 per share ($150,000) by way of private placement.
Results of Operations
Morgain had a net loss of $335,001 in the three month period ending September 30, 2005 compared with $173,801 for the corresponding period in 2004 and $770,297 for the nine months period ending September 30, 2005 compared with $862,256 for the corresponding period in 2004. Mining activities at the Castillo property mainly involved drilling, leaching and metallurgy. To date 18,200 tonnes of relatively soft ore have been placed on the first test pad and have now been fully leached. Another 8,300 tonnes of the harder ore, which appears to have a slightly better grade, have been placed on the second pad and leaching is close to completion.
The higher loss in the three months period ending September 30, 2005 versus the corresponding period in 2004 mainly relates to non-cash stock-based compensation charge of $182,630 and the amortization of $26,061 on capital assets. For the quarter ending September 30, 2004, the stock-based compensation expense amounted to only $86,130 and there was no amortization expense. Legal, audit, accounting and property investigation expenses were also higher during the three months ending September 30, 2005 compared with the same period in 2004 as a result of the overall increased corporate activities.
Capital Resources and Liquidity
As of September 30, 2005, the Company had $737,000 in cash and cash equivalents compared to $1.3 million at the end of 2004. During the third quarter of 2005, $1.0 million was received from H. Morgan & Company pursuant to the long term loan agreement and $232,000 was raised from the exercise of warrants. $1.5 million was spent on the Castillo property mainly on drilling and leaching for the ongoing heap leach bulk test and on scheduled payments under the land acquisition agreements. Cash on hand and income anticipated from gold sales will be insufficient to meet all Morgain's future cash requirements and it will be dependent upon its ability to raise additional funds in the capital markets.
Outlook
Morgain Minerals Inc. remains focused on advancing the Castillo project towards a profitable mining operation. The heap leach bulk test is in full swing and proceeding according to plan. The information gained from this test will be used to plan and seek a permit for the full-scale operation of the Castillo Mine and to obtain the additional financial resources that will be required.
FOR FURTHER INFORMATION PLEASE CONTACT:
Morgain Minerals Inc.
Chester F. Millar
Chairman and President
(604) 643-1727
(604) 643-1726 (FAX)
morgain@telus.net
www.morgainminerals.com
The TSX has neither approved nor disapproved of the information contained herein.
