VANCOUVER, Aug. 14 /CNW/ - Copper Mesa Mining Corporation ("Copper Mesa"
or the "Company") (TSX:CUX) today reported its unaudited second quarter 2008
Highlights for the quarter included:
- Acquired a metallurgical data package and descriptive report by
Metcon Research, Inc. on the Zonia Mine copper project, Arizona.
- Retained Tetra Tech Inc. (NASDAQ: TTEK) to coordinate, assemble
and prepare a definitive feasibility study on the Zonia Mine
- Shareholders approved the Company's name change from "Ascendant
Copper Corporation" to "Copper Mesa Mining Corporation" and
subsequently began trading under the new symbol "CUX" on the TSX.
"Over the course of the past six months, we have made the transition from
a copper exploration company to a near-term copper developer, with a
diversified asset base in the Americas," said Gary E. Davis, President and CEO
of Copper Mesa. "We are confident that the past-producing Zonia Mine, in
particular, will create near-term value for our shareholders."
The Company incurred a net loss of $4,022,000 and $5,371,000 for the
six months ended June 30, 2008 and 2007, respectively. The primary reason for
the decreased net loss was due to lower exploration expenditures of $1,379,000
and $3,036,000 for the six months ended June 30, 2008 and 2007, respectively.
The Company has reduced its exploration efforts in Ecuador pending the
finalization and adoption of a new Mining Law. The decreased exploration
expenses in Ecuador for the period were partially offset by exploration
efforts at the Company's newly-acquired Zonia Mine and Emerald Isle Mine
copper properties. Offsetting the lower exploration costs were higher expenses
related to legal, $188,000 and $35,000 for the three months ended June 30,
2008 and 2007, respectively, and audit and accounting fees of $135,000 and
$61,000 for the three months ended June 30, 2008 and 2007, respectively. Both
legal and audit and accounting fees are higher for the three months ended
June 30, 2008 due to the increased activity related to post Redstone Mining
Corporation (formerly St. Geneviève Resources Ltd.) acquisition issues. Travel
and accommodation expense were also higher for the three months ended June 30,
2008 compared to the same period in 2007, $142,000 and $88,000, respectively,
due to the trips to the newly-acquired Zonia Mine and Emerald Isle Mine copper
properties and fund raising efforts during the three months ended June 30,
2008. Management and consulting services were $379,000 and $460,000 for the
six months ended June 30, 2008 and 2007, respectively. The lower management
and consulting services were due to decreased expenditures on social and
political consulting fees primarily related to Ecuador.
As the Company has not commenced mining operations it had no operating
revenues in either quarter ended June 30, 2008 or 2007. The Company earned
interest income of $79,000 and $55,000 for the six months ended June 30, 2008
and 2007, respectively, and $19,000 for both the three months ended June 30,
2008 and 2007. The higher interest for the six months ended June 30, 2008 was
due to higher overall cash balances.
As at June 30, 2008, the Company had cash and cash equivalents of
$1,994,000. Approximately 36% of this amount is invested in liquid Canadian
and United States dollar-denominated investments in investment grade debt and
banker's acceptances with maturities of 90 days or less while the remaining
64% is on deposit at banking institutions. Other current assets include
$53,000 in sales tax receivable, $67,000 in other receivables and $75,000 in
prepaid expenses. The Company had $682,000 in accounts payable and accrued
The Company used $3,877,000 in operating activities during the six months
ended June 30, 2008, primarily for general and administrative expenses and
exploration costs relating to the Ecuador and the newly-acquired Zonia Mine
and Emerald Isle Mine copper properties. The Company had investing activities
for the purchase of mineral property interests of $49,000, capital asset
additions of $85,000 and transaction costs for the acquisition of Redstone
Mining Corporation, net of cash of $833,000. Offsetting cash used in investing
activities were proceeds from sale of capital assets of $29,000.
Management's discussion and analysis (MD&A), full financial statements
and notes are available at www.sedar.com.
About Copper Mesa Mining Corporation
Copper Mesa is a mineral exploration and development company focused on
advancing into production its two key past-producing copper properties, the
Zonia and Emerald Isle Mines in Arizona. The Company will continue to expand
its resource base through acquisition of additional properties of merit in the
For further information:
For further information: Rana S. Gill, Chief Financial Officer,
1-866-907-6047, email@example.com; or Joanna Longo, Investor Relations,