Matamec Reports Second Quarter 2013 Financial Results
August 19, 2013 (Source: Matamec Explorations Inc.) — Matamec Explorations Inc. (“Matamec” or the “Company”) today reported its financial results for the second quarter and six-month period ended June 30, 2013. All numbers are reported in Canadian dollars unless otherwise stated.
“I am pleased to communicate to shareholders the Company is advancing its exploration of its properties on many fronts with a clear attention on the completion of the Kipawa feasibility study results which are soon to be published this September 4th,” said Andre Gauthier, President and CEO of Matamec Explorations. “The Matamec team is focused on executing its objectives to position the Company for long-term growth.”
- Net loss for the second quarter of $633,495 or ($0.005 per share), compared to a net loss of $870,551 or ($0.007 per share) in the second quarter of 2012;
- Net loss of $907,829 or ($0.008 per share) for the six-month period ended June 30, 2013 compared to a net loss of $1.56 million ($0.013) for the same period in 2012;
- Working capital of $3.98 million including cash and cash equivalents of $1.4 million;
- Current assets for the second quarter totalled $5.57 million compared to $3.30 million in the second quarter of 2012;
- Received from Toyotsu Rare Earth Canada (“TRECan”), $16,000,817 toward the completion of a definitive feasibility study on the Kipawa HREE deposit. With the final payment received as of August 8, 2013 of $565,769, TRECan will now acquire a 49% undivided interest in the Kipawa JV Property; and
- Matamec to receive reimbursed tax credits for qualifying exploration expenses in the amount of $3.66 million.
Kipawa JV Operational Highlights
- Feasibility Study work completed and is now in the final stages of approval by the independent engineering firms Roche Ltd. and Genivar – results to be published September 4, 2013;
- An Environmental and Social Impact Assessment conducted by Golder Associates initiated in May 2012 continues to advance with results to be completed by the fall of 2013;
- Development of the purification circuit ongoing, for producing a high purity heavy and light rare earth product;
- Second pilot plant planned for the fall 2013, for further optimization and improvement on the overall recovery;
- Information meetings continue with regional and local citizens, including The Harmonization Tables and follow-up; and
- Meetings continue with the Band councils and populations of the two Algonquin communities involved in the project, Eagle Village First Nation and Wolf Lake First Nation.
SELECTED FINANCIAL INFORMATION
The following table includes selected consolidated financial data, prepared in accordance with International Financial Reporting Standards (“IFRS”), for the periods ended June 30, 2013 and 2012.
|Three months ended||Six months ended|
|Results as at June 30, 2013||Results as at June 30, 2012||Results as at June 30, 2013||Results as at June 30, 2012|
|Income – Interest||5,799||7,026||20,645||15,496|
|General and administrative expenses||595,649||760,737||1,088,930||1,288,849|
|Income tax (recovery)||81,000||–||(22,000)||–|
|Basic and diluted net loss per share||0.005||0.007||0.008||0.013|
|Statements of Financial Position||
|December 31, 2012|
|Cash and cash equivalents||1,331,228||1,592,282|
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2013 Second Quarter Financial Results Available
The complete financial statements, notes to financial statements, and Management’s Discussion and Analysis for the second quarter ended June 30, 2013, are available on the Company’s website – www.matamec.com. These documents are also filed on SEDAR, and will be accessible from the SEDAR website at www.sedar.com.
Matamec Explorations Inc. is a junior mining exploration company whose main focus is in developing the Kipawa HREE deposit with TRECan. Following the positive conclusion of the PEA study filed on SEDAR in March 2012 (resources that are not mineral reserves do not have demonstrated economic viability), Matamec and TRECan, JV partners, decided to move directly to the feasibility study.
In parallel, the Company is exploring more than 35 km of strike length in the Kipawa Alkalic Complex for rare earths-yttrium-zirconium-niobium-tantalum mineralization on its Zeus property. Since 2008, Matamec discovered many potential showings. Particularly, it drilled the PB-PS Zone in the fall of 2012 and identified similar Eudialyte-Mosandrite/Yttro-Tantanite/Britholite associated mineralization founded at the HREE Kipawa Deposit. This type of mineralization is presently known over 200 metres long and it opens laterally and at depth. The Company plans to drill these extensions later this year.
The Company is also exploring for gold, base metals and platinum group metals. Its gold portfolio includes the Matheson JV property located along strike and in close proximity to the Hoyle Pond Mine in the prolific mining camp of Timmins, Ontario. In Quebec, the Company is exploring for lithium and tantalum on its Tansim property and for precious and base metals on its Sakami, Valmont and Vulcain properties.
“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.”
Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>