| November 25, 2011 |
| Kirrin Resources Q3 2011 Report |
CALGARY, ALBERTA--(Marketwire - Nov. 25, 2011) - Kirrin Resources Inc. (TSX VENTURE:KYM) today reported its financial results and operational highlights for the third quarter of 2011. Exploration activity peaked during the quarter with encouraging progress made at the Alexis River and Key Lake SW uranium projects and the Grevet REE project. Summary financial data is set out below.
Commenting on the period, Kirrin President and CEO, Derek Moran, said: "Kirrin continued to advance its exploration portfolio during Q3. We are particularly pleased with the interpretation of the results from radium analyses at Alexis River. Our projects are reaching a critical stage in their evaluation and we are already planning what may be decisive programs in 2012. The capital markets are increasingly challenging though and they will determine what level of programs can actually be achieved."
Kirrin is in the exploration and development stage of its operations and recorded a net loss for the quarter of $126,000 (Q3 2010: net loss $90,000). Cash and equivalents at the quarter end amounted to $309,000 (Q3 2010: $35,000). Working capital deficit was $22,000 (Q3 2010 deficit: $154,000). General and administrative costs increased by 53% or $46,000 in the third quarter, and 35% or $114,383 during the comparative first three quarters, largely as a result of an expansion in the investor relations program, increased travel costs reflecting a more active exploration program and due diligence on prospective projects, and higher professional fees due to the implementation of IFRS.
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September September
2011 2010
$ $
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Mineral interests 2,537,946 1,867,522
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Total assets 2,918,192 1,930,993
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Working capital (deficit) (21,692) (154,146)
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Total long-term financial liabilities 200,000 200,000
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Shareholders' equity 2,316,254 1,513,376
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Net income (loss) for the quarter (125,831) (90,150)
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Earnings per share for the quarter (0.00) (0.01)
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Shares outstanding (1) 46,484,930 22,793,263
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Note 1: All figures in Canadian dollars except for shares outstanding.
Operational Highlights
-- Data from the 1,531 line-km. helicopter-borne survey flown in February
2011 at Key Lake Southwest ('Key Lake SW') on the southeastern edge of
the Athabasca Basin and from the 1,076 line-km. airborne survey flown in
2010 was integrated and interpreted. A GIS compilation of exploration
data from publicly available sources for Key Lake SW and the interpreted
geophysical data was also completed.
-- Radium analyses at the Alexis River uranium property located in
southeastern Labrador were completed. Interpretation of the analyses
points to two narrow radium anomalies, correlating well with uranium
values, as drill targets within the confines of Anomaly Lake on the
property.
-- In September 2011, the Company announced that it has staked an
additional 4,185 hectare adjacent to its Key Lake SW uranium property
located on the southeastern margin of the Athabasca basin in
Saskatchewan.
-- Kirrin reached an agreement with Ucore Rare Metals Inc. ('Ucore') on
revised terms for its acquisition of an interest in the Bottom Brook
rare earth element property in Western Newfoundland. Kirrin may earn a
50% interest in the Bottom Brook property by spending $2,045,000,
revised from $2,600,000, on exploration by December 31, 2014, revised
from 2012, and making share payments to Ucore of 300,000 Kirrin shares.
Additional information relating to Kirrin is available on Kirrin's web site at www.kirrinresources.com and on SEDAR at www.sedar.com.
Kirrin is a Canadian green energy company that explores for rare earth elements and uranium. In addition to its exploration activities, Kirrin seeks to enhance its capitalization and the quality of its portfolio by utilising its management's broad industry and international experience in the identification of suitable rare earth elements and uranium companies and green energy assets for acquisition, merger, strategic partnership or joint venture. Its strategy is well defined: enhancing shareholder value by combining technical expertise, corporate development skills and professional management. Kirrin's shares trade on the TSX Venture Exchange under the symbol KYM.
To receive company news releases via e-mail, please advise aman@chfir.com and specify "Kirrin News" in the subject line.
Forward-looking information: Except for statements of historical fact, all statements in this news release including, without limitation, future plans and objectives of the Company are forward-looking statements which involve risks and uncertainties. Specifically, this news release contains forward-looking statements concerning the Company's future exploration program. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those expressed or implied by such forward-looking information and undue reliance should not be placed on it. The constituents of the planned programs assume that the Company will continue to allocate sufficient priority to this work relative to its finite cash resources for its overall exploration activity. In each case the risk factors that could cause actual results to vary from results expressed or implied by the forward-looking statements contained in this news release are primarily events beyond Kirrin's control. These forward-looking statements are made as of the date hereof and except as required by applicable securities legislation, the Company undertakes no obligation to publically update or revise forward-looking information, whether as a result of new information, future events or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. | |