ELGIN MINING REPORTS FIRST QUARTER 2011 RESULTS

TORONTO, May 25, 2011 /CNW/ - Elgin Mining Inc. (TSXV: ELG) ("Elgin" or the "Company") reported its financial results for the three months ended March 31, 2011. The unaudited interim consolidated financial statements for the three months ended March 31, 2011 and 2010 and notes thereto, along with Management's Discussion and Analysis are available at www.sedar.com and www.elginmining.com.  Unless otherwise noted, all financial information is expressed in U.S. dollars.

Highlights

  • For the three months ended March 31 2011, the Company generated net income attributed to common shareholders of $515,326, or $0.01 per fully diluted share, primarily the result of unrealized gains on foreign exchange, which more than offset exploration and general and administration costs.
  • At March 31, 2011, the Company had $49.5 million in cash and cash equivalents. The Company also had restricted cash and cash equivalents as collateral for letters of credit for reclamation bonding of $2.5 million.
  • On May 6, 2011, the Company entered into a definitive agreement to acquire the Lupin gold mine and the Ulu deposit.  For additional details on the agreement with please refer to the Company's press release dated May 9, 2011 available on www.sedar.com and www.elginmining.com.
  • On April 25, 2011, the Company announced that Patrick Downey has agreed to join the Company as a consultant.  Upon closing of the acquisition to acquire the Lupin gold mine and the Ulu deposit Mr. Downey will assume the roles of Elgin's President and Chief Executive Officer and a director of the Company.  Robert Buchan will step down as Elgin's President and CEO and will retain the role of Chairman of the Board.

About Elgin Mining Inc.

Elgin Mining Inc. has approximately $46 million in cash available (excluding cash held by a 68% owned subsidiary) to complete the acquisitions of the Lupin Gold Mine and Ulu gold deposit as well as to commence exploration and development programs on each and to meet its obligations with respect to its option agreement with Lincoln Mining Corp.

FORWARD-LOOKING STATEMENTS

Certain information set forth in this press release contains "forward-looking statements" and "forward-looking information" under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements which include management's assessment of Elgin's future plans and operations and are based on Elgin's current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as "expects" "anticipates", "believes", "projects", "plans", and similar expressions. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Elgin's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Elgin undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.


SOURCE Elgin Mining Inc.

For further information:

Brian Morales
Elgin Mining Inc.
(416) 640-1930
bmorales@elginmining.com

Organization Profile

Elgin Mining Inc.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890