TORONTO, Aug. 22, 2011 /CNW/ - Elgin Mining Inc. (TSXV: ELG) ("Elgin" or the "Company") has reported its financial results for the three and six months ended June 30, 2011. The unaudited interim consolidated financial statements for the three and six months ended June 30, 2011 and 2010 and notes thereto, along with Management's Discussion and Analysis are available at www.sedar.com and www.elginmining.com. Unless otherwise noted, all financial information is expressed in U.S. dollars.
For the three months ended June 30, 2011, the Company incurred a net
loss attributable to common shareholders of $3,580,240 or $0.07 per
share. The loss was primarily related to a loss from discontinued
operations, as well as share-based payments expense and a non-cash
adjustment to the Company's reclamation and remediation and other
For the six months ended June 30, 2011, the Company incurred a net loss
attributable to common shareholders of $3,064,914 or $0.06 per share.
At June 30, 2011, the Company had $46.7 million in cash and cash
equivalents. The Company also had restricted cash and cash equivalents
as collateral for letters of credit for reclamation bonding of $2.5
On August 8, 2011, the Company completed the sale of its 68% interest in
Silver Reef Resources Ltd., to Angus Mining (Namibia) Inc. As
consideration for the sale of the interest in Silver Reef the Company
received Cdn$1,000,000 and 4,411,764 shares of Angus Mining (Namibia)
On July 8, 2011, the Company completed the acquisition of the Lupin gold
mine and the Ulu deposit. As consideration, the Company paid
Cdn$4,815,000 and issued 3.8 million common shares.
It also collateralized cash of Cdn$27.185 million to replace security
for reclamation liabilities at Lupin and Ulu with the government of
Canada that the previous owners had in place.
On July 8, 2011, Patrick Downey was appointed Elgin's President and
Chief Executive Officer, in addition to his role as a director of the
Company. Robert Buchan, the Company's previous Chief Executive Officer
retained his role as Chairman of the Board.
- On August 22, 2011, the Board approved the issuance of 300,000 options to employees of the Company. The options have an exercise price of $1.40 and vest over a 24 month period.
The Company has commenced the winterization of the existing work camp and associated facilities at Lupin and expects to complete this work over the next few weeks. Winterization of the camp will allow the Company to drill year round, if required. The Company has also contracted Aurora Geosciences of Yellowknife to complete a detailed review of all historical geophysics work completed around the Lupin mine area in order to review existing drill targets and to plan a detailed geophysics program commencing in early September. This program will be used to identify and prioritize targets for a drill program planned for the fall and winter of 2011. The Company plans to mobilize drills in the fall to commence the drilling later this year. Work at Ulu will be limited to detailed mapping and sampling with the plan being to commence an extensive drill program early in 2012.
About Elgin Mining Inc.
Elgin Mining Inc. has approximately $13 million in cash available to commence exploration and development programs on the Lupin gold mine and Ulu deposit and to meet its obligations with respect to its option agreement with Lincoln Mining Corp.
Certain information set forth in this press release contains "forward-looking statements" and "forward-looking information" under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements which include management's assessment of Elgin's future plans and operations and are based on Elgin's current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as "expects" "anticipates", "believes", "projects", "plans", and similar expressions. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Elgin's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. 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. Elgin undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.