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CALGARY, Dec. 1 /CNW/ - Whitemud Resources Inc. ("Whitemud" or "the Company") (TSXV:WMK) presents an operations update.
Whitemud is providing an update on operations and recent cost reduction initiatives in light of lower than expected sales volumes.
Subsequent to the close of the convertible debenture financing, the Company implemented a significant cost reduction program. Staff reductions and salary cuts have reduced total monthly payroll costs from approximately $265,000 to $115,000 per month. Severance costs associated with this reduction in employment level were approximately $100,000. Progress has also been made in reducing some fixed lease and other operating costs. The Company's current burn rate is estimated at less than $280,000 per month and expected to decline further in early 2010.
Whitemud is delivering its first shipment of Whitemud(MK) into the enormous California market. The product will be used in a water treatment plant project in Los Angeles.
Whitemud has initiated discussions with a number of companies regarding strategic alliances to develop markets and to participate in the exploitation of Whitemud's metakaolin resources.
About Whitemud Resources
Whitemud Resources Inc. (www.whitemudresources.com) is a Canadian-based corporation that is exploiting a large kaolin deposit in southern Saskatchewan. The Company produces Whitemud(MK), a high-reactivity, cement-grade metakaolin that enhances the performance of cement used in construction and in oil and gas wells. The Company is positioned to benefit from expanding North American infrastructure needs and growing environmental pressures.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
Forward Looking Information
This press release may contain forward-looking statements which may include estimates, plans, expectations, opinions, forecasts, projections and guidance or other statements that are not statements of fact, including without limiting the generality of the foregoing, statements made with respect to the Corporation's estimated burn rate, the expectations for futher decline in the burn rate, and the effect of cost reductions. There can be no assurance that the estimated burn rate is sustainable nor that such burn rate will be maintained as it is subject to, among other things, the current economic conditions, projected costs of operations, and anticipated impact of the cost reductions. The statements are made in reliance on the assumption that the cost reductions are effective and sustainable at the present operational levels of the Company. 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. 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 on Whitemud, go to www.whitemudresources.com
For email alerts regarding Whitemud Resources, please go to Whitemud Resources Inc. - Email Alerts
SOURCE WHITEMUD RESOURCES INC.
For further information: For further information: Burl Aycock, CEO, Whitemud Resources, Telephone: (403) 695-1012 or Kelly Babichuk, President and COO, Whitemud Resources, Telephone: (403) 517-0040