International Millennium Mining Corp. ("IMMC" or the "Company") (TSX
VENTURE:IMI) reports its 3rd Quarter 2012 financial statements and MD&A (the
"Quarterly Report") for the Quarter ended September 30, 2012 (BC Form 51-102F1).
Pursuant to the requirements of National Instrument 54-102, this news release
provides a summary of the information contained in the Quarterly Report.
Summary of 3rd Quarter Results Ended September 30
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International Financial Reporting
Standards
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3rd Quarter 3rd Quarter Year to Date
Fiscal 2012 Fiscal 2011 Fiscal 2012
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General and Administrative $ 89,613 $ 114,053 $ 265,893
Expenditures
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(Gain) Loss on Foreign Exchange $ (6,432) $ (127,078) $ 31,523
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Stock Based Compensation $ - $ - $ 240,000
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Gain on Disposal - Mineral Properties $ - $ - $ 640,000
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Net Income (Loss) for the Period $ (109,014) $ 12,597 $ 20,503
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Net and Comprehensive Income (Loss)
for the Period $ (2,014) $ (19,903) $ (286,997)
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Net Loss Per Share $ 0.00 $ 0.00 $ 0.00
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International Financial
Reporting Standards
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As at September December 31,
30, 2011
2012
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Deferred Mineral Property Expenditures $ 5,649,447 $ 5,044,945
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Total Assets $ 6,251,653 $ 5,405,488
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Total Liabilities $ 1,022,804 $ 801,444
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Share Capital 15,504,297 15,082,923
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Common Shares Outstanding 93,961,346 89,636,497
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Fully Diluted Shares Outstanding 115,551,721 103,426,723
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Summary Discussion
At September 30, 2012, the Company had a total of 93,961,346 common shares
outstanding.
During the nine months ended September 30, 2012 the Company recorded a net
income of $20,503 as compared to a net loss of $376,341 during the comparable
period in fiscal 2011. The material variances during the periods are as follows:
i. The Company realized a gain of $640,000 on the sale of the remaining 20%
interest in the Hilda/Guadalupe property. IMMC received 4 million shares
of First Mexican Gold Corp. ("First Mex") and a 2% NSR payable to IMMC
with 1% re-purchasable by First Mex for US$1 million dollars;
ii. The Company granted 1,615,000 stock options and extended the expiry date
of 1,930,000 stock options all expiring December 31, 2014. The Company
recorded $240,000 stock based compensation during the second quarter of
fiscal 2012 as compared, to $18,000 during the comparable period in
fiscal 2011;
iii.The Company recorded a loss on foreign exchange of $31,523 during the
first nine months of fiscal 2012, as compared to a foreign exchange loss
of $67,948 in the comparable period in fiscal 2011, on the translation
of our international subsidiaries; and
iv. The Company incurred an accretion and finance cost expense of $65,723 as
a result of the $400,000 loan payable as compared to a finance expense
of $1,524 in the comparable period in fiscal 2011.
During the first nine months of fiscal 2012, the Company issued 4,324,849 common
shares. These common shares were issued pursuant to the exercise of 50,000 stock
options for proceeds of $5,000; the exercise of 3,569,265 warrants for proceeds
of $359,927; the exercise of 355,584 broker warrants for proceeds of $28,447 and
350,000 shares issued for property payments. The Company received $237,948
during the quarter as part of the private placement which closed on October 12,
2012.
The Company's working capital deficit has increased to $902,098 at September 30,
2012 as compared to a deficit of $594,901 at December 31, 2011.
General and Administration
Comparison of the quarterly results
Overall, there was a 25% decrease in general and administration expenses to
$83,181 in the third quarter of fiscal 2012 from $110,495 in the third quarter
of fiscal 2011 and a 23% decrease from $108,062 recorded in the second quarter
of fiscal 2012. The variances were as follows:
i. The Company recorded a gain on foreign exchange of $6,432 during the
third quarter of fiscal 2012, as compared to a foreign exchange gain of
$127,078 in the third quarter of fiscal 2011 and a $21,880 foreign
exchange loss recorded in the second quarter of fiscal 2012, on the
translation of our international subsidiaries;
ii. Promotion and trade show costs increased to $31,269 in the second
quarter of fiscal 2012 from $28,824 in the second quarter of 2011. The
primary difference is a result of marketing costs targeting the social
media network. There was also a slight decrease from the $29,596
recorded in the second quarter of fiscal 2012 because of the additional
investor relations costs;
iii.Salaries and benefits decreased during the third quarter of fiscal 2012
to $8,064 from $18,019 recorded in the third quarter of fiscal 2011;
iv. Filing fees decreased during the third quarter of fiscal 2012 to $8,327
compared to $30,649 incurred in the third quarter of fiscal 2011
primarily because of no TSX-V filings in the third quarter of fiscal
2012;
v. The Company incurred $25,833 in accretion of finance fees and interest
accruals on the loan payable in the third quarter of fiscal 2012 and nil
in the comparable period in fiscal 2011.
The Company recorded a net loss of $109,014 during the third quarter of fiscal
2012, as compared to a net income of $12,597 during the third quarter of fiscal
2011. The primary reason for difference is the $127,078 foreign exchange gain
recorded in the third quarter of fiscal 2011.
Comparison of the results for the nine months ending September 30, 2012
Overall, there was a 17% decrease in general and administration expenses to
$297,416 which includes stock based compensation of $240,000 in the first nine
months of fiscal 2012 compared to $356,817 in the first nine months of fiscal
2011.
i. The Company recorded $240,000 stock based compensation during the first
nine months of fiscal 2012 as compared to 18,000 during the comparable
period in fiscal 2011;
ii. The Company recorded a loss on foreign exchange of $31,523 during the
first nine months of fiscal 2012, as compared to a foreign exchange loss
of $67,948 in the first nine months of fiscal 2011;
iii.Promotion and trade show costs decreased to $82,168 in the first nine
months of fiscal 2012 from $86,579 in the first nine months of fiscal
2011. The primary difference is the $22,000 incurred in making a video
during the first nine months of fiscal 2011 offset by new social media
costs promoting the Company incurred in fiscal 2012;
iv. Salaries and benefits increased during the first nine months of fiscal
2012 to $37,220 from $34,974 recorded in the first nine months of fiscal
2011, due to additional administration required for its property record
keeping, regulatory filings and other legal document filings;
v. Filing fees decreased during the first nine months of fiscal 2012 to
$28,812 compared to $42,164. The majority of this difference is less
filing fees for private placements in 2012 compared to 2011;
vi. The Company incurred $65,723 in accretion and finance costs on the loan
payable in the first nine months quarter of fiscal 2012 and nil in the
comparable period in fiscal 2011.
The Company recorded a net income of $20,503 during the first nine months of
fiscal 2012, as compared to a net loss of $376,341 during the first nine months
of fiscal 2011. The primary reason for difference is a realized gain of $640,000
on the sale of the Company's remaining 20% interest in the Hilda/Guadalupe
property to First Mex, which was partially offset by the $240,000 stock based
compensation for stock options and the $65,723 in accretion and finance costs in
fiscal 2012.
Exploration Programs
Nivloc Mine, Nevada Property
The Nivloc Mining Project is an advanced exploration project focused on the
past-producing Nivloc silver-gold mine in the Silver Peak mining district in
Nevada. As of April 5, 2012, thirty-seven (37) drill holes, totaling
approximately 10,500 metres were completed on the property.
On August 16, 2012, the Company announced the results of its initial National
Instrument 43-101 compliant independent Mineral Resource Estimate on its Nivloc
Silver and Gold Project located in Southwest Nevada, USA (the "Nivloc
Property"). The independent technical report on the Nivloc Property (the
"Technical Report"), dated effective December 31, 2011, concludes that the area
tested by the 2011 drilling program contains an Inferred Mineral Resource, at 40
g/t Ag cut-off, of 1,640,000 tonnes at a grade of 106.47 g/t Ag and 0.78 g/t Au.
The Technical Report recommends a Phase 1 exploration program having these
objectives: 1) improving the level of confidence within the drilled area by
tightening the drill spacing (at least 11 drill holes); 2) expanding the
currently defined resource area by drill testing along strike towards the
northeast and southwest (at least 5 drill holes); and 3) initiating preliminary
metallurgical, and engineering studies and baseline data collection in
anticipation of an underground exploration and development program (Phase II).
This recommended work program is expected to upgrade the resource from the
inferred to the indicated category, but there can be no assurance of such an
expected upgrade. The recommended program includes a total of 16 drill holes
(4,000 meters) and is estimated to cost approximately $1.3 million. The
Technical Report is filed on SEDAR and the Company's website.
The Company plans to continue the drilling program in late 2012 or early 2013,
which program will be funded by a private placement and the exercise of
outstanding warrants. Results from drill holes 1 through drill hole 34 have been
announced by the Company and filed on SEDAR and can also be reviewed on the
Company's website at www.immc.ca.
Simon Mine, Nevada Property
The Simon Mine is a former producing polymetallic mine, located in the
Walker-Lane Trend south of Reno, Nevada. Shut down in the late 1960s, this
project now presents itself as an exploration and development opportunity
offering both size and grade potential for long-term mining. Historical records
of ore shipped from the 905 drift (89 rail cars) indicate average grades 12 oz
Ag, 0.04 oz Au, 9% Pb, 5.7% Zn and 3% Cu. (These historic figures are considered
relevant and demonstrate the potential of the property, but need to be verified
by the Company). A drilling program began in February, 2010 and was completed in
August, 2010. Results were reported for seven drill holes. The Company plans to
carry out a phase II drill program sometime in 2012/2013.
Subsequent Events
On October 2, 2012 the Company extended the exercise dates of 13,200,000
warrants, exercisable at $0.10 per share, from their current expiry dates of
November 1, 2012 to May 1, 2013. There has been no change to the warrants'
exercise prices.
On October 2, 2012 the Company granted incentive stock options for the right to
purchase up to 100,000 shares of the Company at $0.10 per share, exercisable for
one year.
On October 12, 2012 the Company closed the first tranche of its private
placement which raised gross proceeds of $822,700. Under the terms of the
offering, the Company has issued 10,283,750 units at $0.08 per unit. Each unit
is comprised of one (1) common share and one (1) non-transferable share purchase
warrant entitling the holder to purchase an additional share at $0.10 per share
if exercised on or before April 11, 2014. Shares issued under the placement or
upon exercise of the warrants are subject to a four month hold period ending
February 12, 2013.
The Company paid finders' fees to certain finders for an aggregate amount of
$36,120 in cash and 217,500 broker warrants in connection with this first
tranche of the private placement. Each broker warrant entitles the holder to
acquire one broker unit at $0.08 if exercised on or before April 11, 2014; each
broker unit is comprised of one common share and one ordinary share purchase
warrant entitling the holder to acquire one additional share at $0.10 per share,
if exercised on or before April 11, 2014.
Management is focused on precious metal polymetallic projects in the Americas
and is working towards building a strong, stable and well financed mineral
exploration and small mines mining company.
Concurrently with this news release, the Company is filing its 3rd Quarter
Report with the regulatory authorities through SEDAR (www.sedar.com), and has
mailed it to shareholders who have requested copies and whose names appear on
the Company's Supplemental List. Additional information about International
Millennium Mining Corp. and its mineral property interests, including technical
reports, is available on the internet at the SEDAR website www.sedar.com, or on
the Company's website www.immc.ca.
International Millennium Mining Corp. (TSX VENTURE:IMI) is a mineral exploration
and development company engaged in acquiring known smaller mine deposits, such
as its Nivloc, Nevada silver-gold mine project, in the Americas, with the goal
of advancing the properties to the mining stage. Emerging targets include
silver, gold, copper, zinc and lead. The Company's common shares trade on the
TSX Venture Exchange under the symbol: IMI and on the Frankfurt Exchange under
the symbol: L9J.
ON BEHALF OF THE BOARD
John A. Versfelt, President and CEO
Further information about the Company can be found on SEDAR (www.sedar.com).
This news release may contain forward-looking statements including but not
limited to comments regarding the timing and content of upcoming work programs,
geological interpretations, potential mineral recovery processes and other
business transactions timing. Forward-looking statements address future events
and conditions and therefore, involve inherent risks and uncertainties. Actual
results may differ materially from those currently anticipated in such
statements.
FOR FURTHER INFORMATION PLEASE CONTACT:
International Millennium Mining Corp.
Ms. Sheri Barton
403-217-5830
sheribarton@telus.net
International Millennium Mining Corp.
Mr. John Versfelt
President & CEO
604-527-8135
www.immc.ca
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