Marathon Announces Third Quarter 2008 Financial Results
TORONTO, Nov. 13 /CNW/ - Marathon PGM Corporation ("Marathon" or the
"Company") announced today its financial results for the three and nine months
ended September 30, 2008.
At September 30, 2008, Marathon had cash of $18.2 million, compared to
$12.3 million at December 31, 2007, with operations and project spending in
the three and nine months ended September 30, 2008 amounting to $5.5 million
and $12.9 million respectively. Exploration and development plans for 2009,
particularly for the Marathon project, have been reduced sharply to conserve
cash, and Marathon's cash resources are adequate to fund general and
administration expenses and reduced exploration and development activities
into 2011.
As a result of acquiring the Geordie Lake property and optioning the BCF
property, Marathon now owns or controls a land package encompassing close to
10,000 hectares with total measured and indicated resources of 3.9 million
ounces of PGM's and gold and 755 million pounds of copper, making up the vast
majority of the known mineral resources on the Coldwell PGM-copper complex in
northern Ontario.
Financial and Operational Highlights
- Closed a bought deal unit financing which raised gross proceeds of
$20 million in April 2008.
- Entering into an option and joint venture agreement with Benton
Resources under which Marathon may earn a 60% interest in the Bamoos-
Claw Lake-Four Dam ("BCF") property located immediately north of the
planned Main Zone pit.
- Acquiring Discovery PGM Exploration Ltd., owner of the Geordie Lake
property approximately 14km west of the Marathon deposit with a
measured and indicated mineral resource of 26 million tonnes grading
0.63g/t PGM's and gold and 0.35% copper.
- Completing a 21,000 meter drilling program at the Marathon and BCF
properties. - Revising the mineral resource on the Marathon to
reflect the current metal pricing and mining cost environment and the
this year's drilling, resulting in a measured and indicated in-pit
resource of 85.4 million tonnes grading 1.15 g/t PGM's and gold,
1.7 g/t silver and 0.29% copper
- Finalizing metallurgical recoveries, utilities and infrastructure
design, engineering and costing for the purpose of the definitive
feasibility study, with completion expected before the end of the
year.
- Completing resource definition drilling programs on the Bird River
and Ore Fault properties, with resource estimates expected by the end
of the year.
- Completing prospecting, geophysics and trenching programs at the
Steel Mountain and Tim's Brook properties.
Marathon's loss for the three and nine months ended September 30, 2008 is
set out below.
Three months ended Nine months ended
September 30 September 30
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2008 2007 2008 2007
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$ $ $ $
Exploration
expenses 2,217,522 199,839 4,582,549 305,859
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Operating expenses:
General and
administrative
expenses 382,426 406,804 1,529,651 1,505,160
Depreciation 17,732 20,843 64,922 62,531
Stock based
compensation 27,270 141,433 316,973 561,186
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427,428 569,080 1,911,546 2,128,877
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Total expenses 2,644,950 768,919 6,494,095 2,434,736
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Operating loss (2,644,950) (768,919) (6,494,095) (2,434,736)
Interest income 150,071 106,093 432,461 344,420
Foreign exchange
loss (629) (3,105) (1,162) (5,293)
Loss before income
taxes (2,495,508) (665,931) (6,062,796) (2,095,609)
Future income tax
recovery 568,302 56,225 1,449,355 361,858
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Loss and
comprehensive
loss for the
period (1,927,206) (609,706) (4,613,441) (1,733,751)
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-------------------------------------------------------------------------
Loss per share
- Basic and
diluted (0.07) (0.03) (0.18) (0.09)
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Marathon's accounting policy is to expense property acquisition and
exploration costs on properties without a mineral resource. The increased
exploration expenses in 2008 reflect the results of extensive drilling and
ground-work programs at the Bird River, Ore Fault, and Steel River properties.
This press release should be read in conjunction with Marathon' unaudited
financial statements for the three and nine months ended September 30, 2008
and the related Management's Discussion and Analysis, both of which are
available on www.sedar.com. The Company's Web site may be found at
http://www.marathonpgm.com.
About Marathon
Marathon is in the process of completing a definitive feasibility study
on the Marathon PGM-Cu deposit. Marathon also has development and exploration
stage properties in southeastern Manitoba and western Newfoundland. Marathon's
management plans to build on this focus through the advancement of its
properties, focusing on resource development and by examining other strategic
PGM and base metal opportunities within Canada.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Except for statements of historical fact relating to the Company, certain
information contained herein constitutes "forward-looking statements".
Forward-looking statements are frequently characterized by words such as
"plan," "expect," "project," "intend," "believe," "anticipate" and other
similar words, or statements that certain events or conditions "may" or "will"
occur. Forward-looking statements are based on the opinions and estimates of
management at the date the statements are made and are subject to a variety of
risks and uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the forward-looking
statements. These risks and uncertainties include but are not limited to those
identified and reported in Management's Discussion and Analysis for the year
ended December 31, 2007. Circumstances or management's estimates or opinions
could change, and management disclaims any obligation to revise or update
forward-looking statements, whether for new information, future events or
otherwise. The reader is cautioned not to place undue reliance on
forward-looking statements.
The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
On Behalf of Marathon PGM
"Phillip C. Walford"
Phillip C. Walford
President, Chief Executive Officer
info@marathonpgm.com
416-987-0711
%SEDAR: 00020574E
For further information: David Leng, P.Geo.: dleng@marathonpgm.com, Tel:
(905) 537-5377, Fax: (415) 861-1925
.