Whitemud Resources Inc. - Progress update 2007 third quarter results.



    /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
    DISSEMINATION IN THE UNITED STATES./

    CALGARY, Nov. 26 /CNW/ - Whitemud Resources Inc. ("Whitemud" or the
"Company") (WMK - TSX Venture Exchange) today reported financial results and
progress update for the period ended September 30, 2007.

    
    SUMMARY FINANCIAL RESULTS
    -------------------------------------------------------------------------
    Income Statement         Three         Three          Nine          Nine
     Summary                months        months        months        months
                             ended         ended         ended         ended
                      September 30, September 30, September 30, September 30,
                              2007          2006          2007          2006
                              $             $             $             $
    -------------------------------------------------------------------------
    Interest income        354,275         9,713       924,528        20,917
    -------------------------------------------------------------------------
    Expenses               770,527       614,102     2,376,890     1,193,407
    -------------------------------------------------------------------------
    Non-Cash
     Stock Based
     Compensation
     expense               925,484       412,764     1,151,811       412,764
    -------------------------------------------------------------------------
    Net loss
     (excluding
      Non-Cash Stock
      Based Compensation
      Expense)            (416,252)     (604,389)   (1,452,362)   (1,172,490)
    -------------------------------------------------------------------------
    Net loss            (1,341,736)   (1,017,153)   (2,604,173)   (1,585,254)
    -------------------------------------------------------------------------
    Net Loss Per Share       (0.08)        (0.12)        (0.22)        (0.61)
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    Balance Sheet Summary              As at September 30, As at December 31,
                                                     2007               2006
                                                     $                  $
    -------------------------------------------------------------------------
    Working capital                            17,587,243            103,599
    -------------------------------------------------------------------------
    Total assets                               66,193,930         12,008,438
    -------------------------------------------------------------------------
    Shareholder equity                         59,189,174         10,192,984
    -------------------------------------------------------------------------
    

    A significant portion of the net loss recorded for both the quarter and
nine months ended September 30, 2007 relates to non-cash stock based
compensation expense. Non-cash stock based compensation expense of $925,484
was booked in the quarter ended September 30, 2007 and $1,151,811 was booked
in the nine months ended September 30, 2007.
    Working capital as of September 30, 2007 included cash of $22,089,381
compared to cash of $1,479,770 as of December 31, 2006.
    During the three months ended September 30, 2007 the company invested
$15,142,719 in capital assets and $31,744,021 during the nine months ended
September 30, 2007 compared to $2,552,126 and $3,170,468 respectively in the
comparative periods.
    The financial summary should be read in conjunction with the Company's
September 30, 2007 unaudited financial statements and Management's Discussion
and Analysis, both of which are available on www.sedar.com.

    CONSTRUCTION

    Construction of the Gollier Creek processing plant is 95% complete, and
is on schedule and on budget for year-end completion. Commissioning will begin
in January 2008. Senior managers for the plant and mine have been hired and
recruitment and training of operating personnel is underway. The Company
expects to commence shipments of Whitemud(MK) cement-grade metakaolin to
customers in the first quarter of 2008.

    MINE PREPARATION

    Overburden removal in the Gollier Creek West Pit began in September 2007
and 150,000 cubic meters have been removed to date. Initial mining operations
have commenced and ore is being stockpiled at the plant in preparation for
plant start-up in early 2008. Ongoing mine operations will be outsourced to an
experienced mining contractor and the Company has requested contract tenders
from qualified contractors.

    MARKETING AND PRODUCT DEVELOPMENT

    The Company is completing sales agreements with key customers and
preparing a detailed product launch plan to ensure successful introduction of
Whitemud(MK). Whitemud's growth towards commercial production has attracted
potential opportunities for metakaolin sales beyond the core markets of
concrete construction and oil and gas well cementing, and for sales of silica
sand co-products.

    LOGISTICS

    Construction of a rail transload center at Scout Lake, 22 km east of the
Gollier Creek Mine, is scheduled for late January 2008 completion. Rail cars
have been secured for service beginning in late January. Agreements for truck
delivery to Western Canadian customers are being finalized.

    EXPLORATION

    Most of the analytical results from the company's summer 2007 exploration
drilling program have been received. The company expects to complete
assessment of the resource potential of each targeted area by year-end.

    Whitemud Resources Inc. is a Canadian-based corporation which is
currently developing the Gollier Creek Mine to exploit a large kaolin deposit
in southern Saskatchewan. Whitemud plans to produce Whitemud(MK), a
high-reactivity cement-grade metakaolin that enhances the performance of
cement in construction and oil and gas wells. The first phase of construction
and mine development is nearly complete. The Company plans to ship
Whitemud(MK) to markets across North America beginning in the first quarter of
2008. More information is available on the Company's website at
www.whitemudresources.com.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

    This press release may contain forward-looking statements which may
include estimates, plans, expectations, opinions, forecasts, projections,
guidance or other statements that are not statements of fact, including
without limiting the generality of the foregoing, statements made with respect
to future drilling and delineation of the Company's resource base, timing for
the delivery of major equipment, completion of commissioning of the processing
plant and establishing a presence in the Company's key market areas. There is
no assurance that the expected timeframes will be met as all are subject to
risks which include, without limitation, the possibility for equipment
failures, labour disputes, work stoppages, equipment delivery delays, and the
potential for delays arising from injuries and safety concerns at the
worksite. Although the Company believes that the expectations reflected in
such forward-looking statements are reasonable, it cannot give any assurance
that such expectations will prove to be correct. Results of Whitemud may be
affected by a variety of variables and risks associated with the mining and
mineral processing industry such as loss of market, competition, ability to
access sufficient debt and equity capital from internal and external sources,
ability to expand in the marketplace, exploration and development plans and
results, anticipated capital expenditures and financing thereof, timing of
applications and approvals. As such the future plans and objectives of
Whitemud are forward-looking statements that involve risks and uncertainties
and may be based on assumptions that could cause actual results to differ
materially from those anticipated or implied in such statements. The Company's
forward-looking statements are expressly qualified in their entirety by this
cautionary statement. Unless otherwise required by applicable securities laws,
the Company does not intend nor does it undertake any obligation to update or
review any forward-looking statements to reflect subsequent information,
events, results or circumstances or otherwise.





For further information:

For further information: Kevin Graham, VP Communications, Ron Love, CFO
or Kelly Babichuk, President & COO, Whitemud Resources Inc., (403) 517-0040

Organization Profile

WHITEMUD RESOURCES 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