Blue Gold Reports First-Quarter Financial Results
December 13 2011 - 4:00PM
Marketwired Canada
Blue Gold Mining Inc. (TSX VENTURE:BGX) reports financial results for the three
months ended September 30, 2011, and provides a brief update on our corporate
activities. All amounts are presented in Canadian dollars unless otherwise
stated.
OVERVIEW
We are a gold exploration and development team with a track record of converting
modest capital investments into exceptional shareholder returns. We have an
entrepreneurially driven board and management team with skill sets in capital
markets, M&A, audit and compliance, and, most importantly, resource discovery
and development. We have strengthened our treasury position to provide us with
the necessary resources to identify, acquire and unlock value in new projects
globally.
HIGHLIGHTS
Leadership and Management
-- During the quarter, we installed new leadership to build and grow the
business. We appointed Mark O'Dea as Chairman and Chief Executive
Officer, and Donald McInnes as Vice-Chairman. Mr O'Dea founded and
developed Fronteer Gold from a start-up in 2001 to an advanced stage
gold development company which was acquired by Newmont Mining Corp. in
2011 for $2.3 billion. Mr. McInnes is a natural resource entrepreneur,
who most recently founded and led Plutonic Power in expending over $900
million to build the largest run-of-river hydro project in Canada and
B.C.'s largest wind farm.
-- We added strong mining, financial and capital markets experience to our
board with the election of Nolan Watson, Lenard Boggio, and Scott
Lamacraft, as directors.
-- We enhanced our management team and financial oversight with the
appointment of Sean Tetzlaff as CFO. Mr. Tetzlaff was the former CFO and
VP Finance of Fronteer Gold.
-- Subsequent to the quarter end, we brought additional technical strength
to our Board with the appointment of Charlie Ronkos, Senior Vice
President of Exploration at Goldcorp Inc.
-- We changed the company name to Blue Gold Mining Inc. (the company was
initially incorporated as Drexel Capital Corp. under the Business
Corporations Act - British Columbia on June 18, 2009, and subsequently
changed its name to Drexel Resources Ltd. on April 18, 2011).
Financing and Corporate Activities
-- Received gross proceeds of $2.4 million on July 7, 2011 with the closing
of a $2.4 million private placement announced June 23, 2011.
-- Subsequent to the quarter end, received gross proceeds of $24.6 million
with the closing of a $20.0 million best efforts offering and
overalottment option for an additional $4.6 million. The offering
included the participation of Goldcorp, one of the fastest-growing,
lowest-cost senior gold producers. Goldcorp purchased 5 million units
representing approximately 8.6% of the issued and outstanding common
shares of the Company.
Exploration Activities
-- We commenced a 500-line-kilometre airborne geophysical (magnetometer and
electromagnetic) survey on the Titan gold-copper property, located in
northwestern British Columbia. We intend to evaluate the results of the
survey, complete follow-up geological work to define specific target
areas for drilling.
We have assembled a proven management team and board of directors and have
strengthened our treasury, providing us with the necessary resources to
identify, acquire and advance new projects globally. With the Company's cash
balance of approximately $25 million, we remain focused on identifying projects
that will allow us to create value for our shareholders.
SELECTED FINANCIAL DATA
The following selected financial data is derived from our financial statements
for the three months ended September 30, 2011 and 2010, as prepared in
accordance with International Financial Reporting Standards ("IFRS").
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Three months ended
September 30
2011 2010
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Loss for the period ($2,429,858) ($57,040)
Loss per share - basic and diluted ($0.08) ($0.02)
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As at
September 30 June 30
2011 2011
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Cash $2,638,026 $2,189,899
Current assets $2,697,833 $2,210,425
Non-current assets $180,128 $36,704
Current liabilities $177,585 $38,029
Non-current liabilities $ - $ -
Shareholders' equity $2,700,376 $2,209,100
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-- For the three months ended September 30, 2011, the Company recorded a
net loss of $2,429,858 compared to net losses of $57,040 for the three
month period ended September 30, 2010. The net loss through the current
period includes significant non-cash items. The increase in net loss of
2,372,818 was primarily due to a $2,301,504 increase in stock-based
compensation expense for the three months ended September 30, 2011
compared to the same period in 2010, the accrual of wages and benefits
expenses of $40,000 and the incursion of consulting fees and an increase
in professional fees.
-- Working Capital of $2,520,248 at September 30, 2011 includes $2,638,026
in cash and $59,807 in receivables and prepaid expenses net of $177,585
in accounts payable and accrued liabilities.
-- Non-current assets of $180,128 is comprised predominantley of
exploration and evaluation assets reflecting activity relating to the
Company's Titan property.
Details of the Company's financial results are described in the condensed
interim financial statements and corresponding Management's Discussion and
Analysis for the three months ended September 30, 2011. These and further
details on Blue Gold's project and activities can be found on the Company's
website at www.bluegoldmining.com and on SEDAR at www.sedar.com.
This new release may contain forward-looking statements. These statements are
based on current expectations and assumptions that are subject to risks and
uncertainties. Actual results could differ materially because of factors
discussed in the management discussion and analysis section of our interim and
most recent annual financial statements or other reports and filings with the
TSX Venture Exchange and applicable Canadian securities regulations. We do not
assume any obligation to update any forward-looking statements.
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