| ||June 21, 2004|
MBMI Reports Summary of Financial Results For Year-End Jan 31 2004
| ||MBMI RESOURCES INC. (MBR-TSXV) "MBMI" reports its audited annual financial results for the year ended January 31, 2004. Full results and additional information relating to the Company may be found on SEDAR at www.sedar.com.|
The Company recorded a net loss for 2004 of $605,711 ($0.06 per share), compared with $543,337 in 2003 ($0.08 per share). Generally the Company's administration expenses decreased due to declining activity in the Philippines however the increase in the Company's net loss was largely due to the expensing of the Company's Stock Option Compensation ($134,379) as required under new accounting policies and foreign currency losses ($97,605 loss in 2004 compared to a foreign exchange gain of $25,906 in 2003). Net expenditures on mineral properties increased during 2004 to $177,752 from $0 in 2003. Net expenditures consists of $275,253 resulting from the purchase of Tri-Energy Inc., $42,498 of exploration costs on the Tri-Energy properties, reduced by $140,000 of option payments received on these properties.
The Company's financial condition improved in 2004. As at January 31, 2004, the Company has a working capital deficiency of $181,844 (including cash of $469,816), whereas in 2003 the Company's working capital deficiency was $686,747. The accumulated deficit increased to $9,616,843 from $9,011,132 in 2003. The most significant component of the change in working capital was the increase in cash and cash equivalents to $469,816 from $2,882 in 2003.
Despite the loss for the year from operations, management successfully reactivated the Company and, acquired 3 Canadian exploration properties through the acquisition of a 44.91% interest in the Tri-Energy Group; the Squall lake, Manitoba gold project, the Copper Prince property in Sudbury, Ontario, and the McMillan gold mine property in Espanola Ontario. MBMI has the option to acquire another 45.1% interest in the Tri-Energy Group by issuing 1,440,000 shares of common stock. MBMI was successful in optioning its Squall lake gold property to Coniagas Resources Ltd. ("Coniagas"), however subsequent to the year end, Coniagas withdrew from the agreement. The Company also made limited progress in restructuring its Philippine nickel project which has been largely inactive for the past two years. During the fiscal year ended January 31, 2004, the Company issued common shares in connection with more than $1 million in new equity funding, of which approximately $200,000 was received in the previous fiscal year.
Subsequent to the year-end, the Company completed a first phase fieldwork and drilling program on its Sudbury, Ontario McMillan project at a cost of approximately $120,000. Results of a seven-hole drill program which tested for extensions of the gold mineralization and structure on strike from areas previously mined have extended the zone for 130 meters to the east, and 20 meters to the west for a total strike length of over 400 meters. The zone remains open on strike and at depth below the old workings (265 meters). The best result announced in the Company's May 12 news release was 7.91g/t (0.23oz) gold over 10.85 meters.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.
For further information, contact:
David G. Tafel - VP Corporate Development
The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.
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