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CALGARY, Nov. 6 /CNW/ - Whitemud Resources Inc. ("Whitemud" or the "Company") (WMK - TSXV) - During the 2009 construction season, Whitemud's metakaolin product was used in several large construction projects, oil and gas wells, and in mining applications and is scheduled to be used in a growing number of projects in 2010. Management believes these successful field applications have significantly increased the awareness of the value of Whitemud's product as an effective supplemental cementing material (SCM) to improve concrete quality and as a tool to reduce the environmental impact of concrete construction by reducing the CO(2) footprint and improving durability. Whitemud continues to expand interest in Whitemud(MK) throughout North America. To date, over 20 customers are using Whitemud(MK) in a total of 25 locations. In the next few months, key projects are expected to begin in Boston and Los Angeles while large construction contractors and additional concrete and cement companies are now evaluating Whitemud(MK) for use in their projects or operations.
Despite growing acceptance of Whitemud's product, the Company and the concrete industry continue to feel the negative impact of the economic downturn. The anticipated growth in sales of Whitemud(MK) is not meeting the Company's expectations. In response, the Company is investigating opportunities to pursue a strategic relationship with major construction material suppliers that can bring additional resources to exploiting and marketing metakaolin in North America. In the meantime, costs are being minimized by the Company through a number of initiatives, including the reduction of overhead through staff reductions and salary cuts to senior management, re-negotiating of key supplier contracts, and by postponing plant production until the majority of the product inventory has been consumed. Through these initiatives, the Company has managed to ensure the retention of key senior management and personnel to maintain continued quality supply and service to our existing and future customers.
As of September 30, 2009 the Company had approximately $2.6 million in cash available for operations and had not accessed its current credit facility.
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.
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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 expectations of future sales growth and the timing for key projects in the US and the evaluations of Whitemud(MK) for use in projects or operations there, and efforts in pursuing a strategic relationship to bring additional resources to exploiting and marketing metakaolin in North America. There can be no assurance that the Corporation's efforts in this regard will be successful. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of exploration activities; actual results of reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of metakaolin and kaolin; possible variations of kaolinized deposit composition and qualities; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and delays in obtaining government approvals or financing or in the completion of development or construction activities. Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in the forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. In making its forward-looking statements, the Corporation used, among others, the following material factors or assumptions to develop forward-looking information enumerated above: the target market for Whitemud will accept Whitemud's metakaolin for its stated purpose, use of metakaolin remains economic, government regulations governing Whitemud's title to mineral properties, its permits and plant operations will not change, and that the various independent reviews conducted on the Corporation's products and resources are accurate. 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; Ron Love, Vice President, Finance and CFO, Whitemud Resources, Telephone: (403) 517-0040; Kelly Babichuk, President and COO, Whitemud Resources, Telephone: (403) 517-0040