2nd Quarter 2007
Report
North Vancouver,
B.C. - International Millennium Mining Corp. (the
“Company”) (TSX-V:IMI) announces the release of its 2nd Quarter
financial statements and MD&A (the “Quarterly Report”) for
the six months ended June 30, 2007 (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.
2nd Quarter
Highlights
Cdn
($)
|
2nd Quarter June
30, 2007
|
2nd Quarter June
30, 2006
|
Year to date Fiscal 2007
|
Year to date
Fiscal 2006
|
Net
Revenues
|
Nil
|
Nil
|
Nil
|
Nil
|
General
and Administration expenditures
|
$
76,389
|
$
86,125
|
$ 201,425
|
$ 148,033
|
Interest income
|
$
23,381
|
$
-
|
$ 44,960
|
$ 31
|
Stock
based compensation expense
|
$ 114,000
|
$
80,000
|
$ 114,000
|
$ 80,000
|
Net
Loss
|
$ (167,008)
|
$ (167,324)
|
$ (270,470)
|
$ (228,340)
|
Net
Loss per share
|
$ (0.01)
|
$ (0.02)
|
$ (0.02)
|
$ (0.03)
|
Deferred Mineral Property expenditures
|
$ 432,652
|
$ 165,155
|
$ 671,614
|
$ 192,837
|
Total
assets
|
$ 7,941,432
|
$ 965,039
|
$ 7,941,432
|
$ 965,039
|
Total
liabilities
|
$ 160,278
|
$
64,760
|
$ 160,278
|
$ 64,760
|
Working
capital
|
$ 2,630,425
|
$ 113,793
|
$ 2,630,425
|
$ 113,793
|
Common
shares – issued and outstanding
|
30,522,944
|
9,386,370
|
30,522,944
|
9,386,370
|
Common
shares – fully diluted
|
45,575,287
|
10,296,370
|
45,575,287
|
10,296,370
|
IMMC began trading on the facility
of the TSX Venture Exchange at the opening on February 27, 2007 under the
trading symbol IMI.
General and administrative costs
for the quarter ended June 30, 2007 were $76,389, down from $125,036 in the
quarter ended March 31, 2007. The primary reasons for the difference are
non-recurring legal and filing costs from the completion of the listing
application during the first quarter of fiscal 2007. The Company incurred
$13,128 in the second quarter of fiscal 2007 in promotion and trade show
costs and travel costs, down marginally from $14,412 incurred in the first
quarter of fiscal 2007 and compared to nil costs during the first quarter
in fiscal 2006. In general, these costs should average $14,000 - $15,000
per quarter.
Accounting and legal costs
decreased $21,252 during the second quarter of fiscal 2007 to $8,408 as
compared to $29,660 in first quarter of fiscal 2007 primarily from
non-recurring legal and audit fees required for the listing application and
the private placements. There was no significant change between accounting
and legal costs from the second quarter of fiscal 2006 of $8,288 compared
to $8,408 in the second quarter of fiscal 2007.
Transfer agent and filing costs
decreased by $33,252 during the second quarter of fiscal 2007 from $42,628
in first quarter of fiscal 2007 to $9,376 in the second quarter of fiscal
2007 and a decrease from $16,954 incurred in the second quarter of fiscal
2006. The decreased expenditures are due to the completion of the listing
application to the TSX–Venture Exchange, however higher transfer
agent costs due to the significant volume of shares issued during the first
quarter of fiscal 2007 offset some of the reduction in filing costs.
Promotion and trade costs increased marginally to $12,451 during the second
quarter of fiscal 2007 as compared to $11,477 in the first quarter of
fiscal 2007 and compared to nil costs in the fiscal 2006, these costs are
primarily due to trade shows and travel costs which will likely average
$14,000 to $15,000 per quarter. The investor relations for the Company are
being performed jointly by the management of the Company and by an investor
relations consultant.
Property payment and deferred
mineral property expenditures increased to $432,652 in the second quarter
of fiscal 2007 compared to $165,155 in the second quarter of fiscal 2006.
The increase in expenditures is primarily due to geophysics work on the
Simon Property and line cutting on the Cobalt Property. Property payments
also increased to $124,371, reflecting the Company’s continual
interest in all properties acquired since 2005.
Cash reserves decreased during the
quarter from $3,190,142 to $2,717,525 primarily due to property payments
and deferred exploration expenditures. The Company’s working capital
position has decreased by $444,282 from $3,074,707 at March 31, 2007 to
$2,630,425 at June 30, 2007.
In April 2007, the Company granted
1,085,000 stock options to employees, directors, and consultants at a price
of $0.40 and an expiry date of May 1, 2010.
With the completion of the private
placements, the Company has planned exploration on most of its properties
in fiscal 2007. The Company continues to have a joint-venture partner on
the Harrison Lake property and continues to find partners for several other
properties. In the first quarter of fiscal 2007 the Company initiated
several programs on the Simon Property, Harrison Lake (Jason) Property and
the Cobalt Property. Effective May 31, 2007, the Company entered into an
Option and Joint Venture with First Mexican Resources Inc. (“First
Mex”) of Toronto, Ontario, granting First Mex the right to elect to
acquire 60% interest in some and 40% interest in other mineral concessions
in Sonora State, Mexico. In consideration of the expenditure by First Mex
of one million US dollars (US$1,000,000) in accordance with the terms of
the Option Agreement, First Mex acquires the exclusive and irrevocable
right and option to elect, based on an alternating right-of-election
formula set out in the Agreement, to acquire sixty or forty percent
undivided interests in and to the Hilda 30 and La Esperanza properties
presently held under agreements by MIMSA, and in any other property
acquired by MIMSA or First Mex within a defined area of interest in Sonora
State. First Mex agrees to expend an aggregate total of US$1,000,000 on any
one or more of the Mexican properties as follows:
a) US$175,000 on or before December
31, 2007; b) US$175,000 on or before August 31, 2008; c)
US$275,000 on or before August 31, 2009; and d) US$375,000 on or
before August 31, 2010.
Upon completion of the expenditures
and acquisition by the parties of respective interests in the properties,
all subsequent expenditures for exploration or development of each property
are to be carried out on a joint venture basis.
Management is focused primarily on
precious metal polymetallic projects in the Americas and is working towards
building a strong, stable and well financed mineral exploration and
development property entity.
Future Exploration Programs
– First half of 2007 The Simon
Mine is a former producing polymetallic mine, located in the
Walker-Lane Trend south of Reno. Shut down in the late 1960s, this project
now presents itself as an exploration and development play offering both
size and grade potential for longer-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). The Company has begun a second phase
deeper penetrating IP/Resistitivity geophysical program over the new area
staked subsequent to Phase I and has also implemented mag/EM geophysics and
mobile metal ion geochemical programs.
The High Lake
Property has been explored in a piecemeal fashion since the early
1950s. During that time, parts of the claim group were controlled by
different parties. The IMMC option agreement marks the first time that
this property, covered by the 20 claims, has been held by one company.
Additionally, the High Lake Property is contiguous on the south border of
the Electrum Lake Property. The High Lake/Electrum Lake Properties contain
several known gold and gold-copper-molybdenum prospects. Several resource
estimates have been produced by previous explorers on the mineralized zones
identified in the eastern and western part of the High Lake Property.
Geochemistry work on this project, which will be concentrated within these
two zones, has been delayed to the Fall, 2007.
The Cobalt
Property has numerous classical Cobalt Type silver targets
outlined within that property claim group. Sufficient preliminary work has
been completed on three of these silver targets to warrant further testing.
The next phase of exploration on the Cobalt Property began in the first
quarter of fiscal 2007 and consisted of line cutting and geophysics work
over certain areas of the property. The purpose of the geophysics work was
to identify the location of volcanogenic massive sulfide and Cobalt Type
targets. In the second quarter, this work was followed up by first phase
mobile metal ion geochemistry work, the results of which encouraged the
Company to proceed to a more detailed second phase mobile metal ion
geochemical program.
At its Harrison Lake
Project in British Columbia, the Company will continue exploration
work with its joint venture partner Sutcliffe Resources Ltd. Active mining
at the Giant Mascot Mine took place within the ultramafic belt,
approximately 10 kms from the southeast corner of the Harrison Lake
property between 1958 – 1974, producing 4.2 million tonnes from
reserves totaling 4.7 million tonnes grading 1.19% Ni; 0.46% Cu; 0.1% Co;
1.0% Cr; and unreported grades of platinum group metals, gold and silver.
The Harrison Lake ultramafic belt provides a very attractive exploration
prospect for Ni/Cu and platinum group mineralization. Ground chemistry and
detailed geology of priority targets is taking place on the Jason property
located at Harrison Lake.
Six Months Ending June 30,
2007 General and administrative costs for the second
quarter have decreased due to fewer non-recurring charges as the listing
application and the financings are completed. As a result, the quarterly
general and administrative costs have decreased to $76,389 in the second
quarter of fiscal 2007 compared $125,036 in the first quarter of fiscal
2007. Overall, for the first six months of 2007 general and administrative
costs increased by $53,392 to $201,425 compared to $148,033 in the first
six months of 2006. This increase was primarily due to non-recurring
charges associated with the Company’s listing application on the
TSX-Venture Exchange and private placements that were completed in the
first quarter of fiscal 2007.
Regulatory costs and salaries have
decreased $26,516 in the first six months of fiscal 2007 to $25,825 from
$52,341 in the first six months of fiscal 2006 due to hiring of an employee
responsible for all regulatory and land management matters previously
contracted. Administration costs have decreased by $16,596 in the first
six months of fiscal 2007 to $23,219 from $39,815 in the first six months
of fiscal 2006 due to new lower contract rates with American Resource
Management Consultants Inc. for administration services.
The Company earned interest of
$44,960 in the six months ending June 30, 2007 compared to $31 in the six
months ending June 30, 2006. The Company invests excess cash in
conservative short-term interest bearing investments.
Management believes that with the
very low metal inventories, relatively low increases in metal supplies and
increased demand for virtually all precious, base and strategic metals in
the early stages of a metal bull market, its strategy of acquiring and
developing precious metal polymetallic projects in historic areas in the
Americas is prudent and will enhance the Company’s financing ability
and long term value.
Financial and Mineral
Property Information Concurrently with this news
release, the Company is filing the Quarterly 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. A
copy of the Quarterly Report is available on the SEDAR website, or will be
mailed upon request. Additional information about International Millennium
Mining Corp. and its mineral property interests, including technical
reports, is available on the internet at the SEDAR website, namely www.sedar.com.
International Millennium Mining
Corp. (the “Company”) is a mineral exploration and development
company engaged in the acquisition and exploration of precious metal
polymetallic mineral properties in the Americas. The Company has acquired
and is exploring mineral properties in British Columbia, and Ontario,
Canada; Nevada, USA; and Sonora State, Mexico. Emerging mineral targets
include silver, gold, cobalt, molybdenum, zinc, lead, nickel, copper and
platinum group metals.
ON BEHALF OF THE BOARD
“John A. Versfelt”
John A. Versfelt
President and CEO
Further information
about the Company can be found on SEDAR (www.sedar.com) or by contacting
Mr. John A. Versfelt, President & CEO of the Company or Mr. D. Alex
Caldwell, Corporate Secretary at 604-984-9907.
The Exchange has
not in any way passed upon the merits of this news release. 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.
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