Matamec Reports Third Quarter 2013 Financial Results
December 2, 2013 (Source: Matamec Explorations) — Matamec Explorations Inc. (“Matamec” or the “Company”) today reported its financial results for the third quarter and nine-month period ended September 30, 2013. All numbers are reported in Canadian dollars unless otherwise stated.
- Net earnings for the third quarter of $1,069,047or ($0.009 per share), compared to net earnings of $2,369,141 or ($0.02 per share) in the third quarter of 2012;
- Net earnings of $161,218 or ($0.001 per share) for the nine-month period ended September 30, 2013 compared to net earnings of $806,840 ($0.007 per share) for the same period in 2012;
- Working capital of $2.78 million including cash and cash equivalents of $1.71 million and tax credits to be received of $1.79 million;
- Current assets for the third quarter totalled $4.01 million compared to $6.96 million in the third quarter of 2012;
“The Company made considerable progress this quarter in executing its strategic plan and advancing the Kipawa project to the next level,” said Andre Gauthier, President and CEO of Matamec Explorations. “With the completion of the feasibility study and the launch of the second pilot plant well underway, we are now in a favourable position to focus in on strengthening our business plan to build stronger economics for the Kipawa project. We look forward in the near future to announcing the many positive developments in progress by the Company.”
Kipawa JV Operational Highlights
- Filed the first feasibility study technical report for a heavy rare earth project outside of China which demonstrated the Kipawa JV project is both economically and technically positive;
- Toyotsu Rare Earth Canada Inc. (“TRECan”) acquired its remaining 24% undivided interest in the Kipawa JV property giving them a total of 49%;
- Second pilot plant initiated for beneficiation on September 24, 2013, with the expectations of achieving higher rare earths recovery rates which would be a first step toward building stronger economics for the project. The Beneficiation pilot plant was completed in November 2013, and will be followed by the Hydrometallurgical and Purification pilot plant in the first quarter of 2014;
- In parallel the development of the purification circuit is ongoing, for producing a high purity heavy and light rare earth product. It is planned to pilot this last circuit at the end of the first quarter 2014;
- An Environmental and Social Impact Assessment (ESIA) conducted by Golder Associates initiated in May 2012 for the Kipawa project continues to advance with completion planned for Q1 2014. However an important part of the ESIA, the baseline study and the restoration plan will be completed by Q4 2013; 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 ANNUAL INFORMATION
Selected financial information for the period ended September 30, 2013 and 2012 is shown in the following table:
|Three months ended||Nine months ended|
|Results as at September 30, 2013||Results as at September 30, 2012||Results as at September 30, 2013||Results as at September 30, 2012|
|Gain on disposal of exploration and evaluation assets||2,131,332||4,328,288||2,131,332||4,328,288|
|Interests and other income||14,622||14,382||35,266||29,878|
|General and administrative expenses||653,674||190,909||1,743,604||1,503,872|
|Income tax (recovery)||406,591||1,710,000||243,948||1,710,000|
|Basic and diluted net loss per share||0.009||0.020||0.001||0.007|
|Statements of Financial Position||
|December 31, 2012|
|Cash and cash equivalents||1,714,460||1,592,282|
2013 Third Quarter Financial Results Available
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The complete financial statements, notes to financial statements, and Management’s Discussion and Analysis for the third quarter ended September 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.
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 2007, Matamec discovered eight (8) new rare earth showings. Particularly, it drilled the PB-PS Zone in the fall of 2012 and identified Eudialyte-Mosandrite/Yttro-Titanite/Britholite mineralization similar to those found at the HREE Kipawa Deposit. This type of mineralization is presently known over a length of 200 metres and is open laterally and at depth. This mineralized zone is 2.3 km SW of the Kipawa deposit and a soil anomaly seems to connect the two. 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 gold 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 Valmont and Vulcain properties. Matamec signed in August 2013 an option agreement where Canada Strategic Metals can acquire an interest of up to 50% in the Sakami gold project, located in the James Bay region of northern Quebec by committing $2.25 million in exploration work including $500,000 in the first year on drilling.
“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>