TORONTO, March 29 /CNW/ - Jaguar Nickel Inc. ("Jaguar" or the "Company")
(TSX: JNI) today reported results for its fiscal year ended December 31, 2006.
The net loss for 2006 was $1,297,246 compared with a net loss of $2,419,365 in
Revenue for the fiscal year ended December 31, 2007 was $3,450,395
compared with $485,355 in the previous year. Included in revenue was a gain on
sale of the Company's wholly owned Guatemalan subsidiary Jaguar Nickel, S.A.
("Jaguar, S.A.") of $2,361,570. On January 31, 2006 Jaguar closed the sale of
Jaguar, S.A. to BHP Billiton Limited ("BHP Billiton") for $19,000,000, of
which $18,000,000 was received in cash and $1,000,000 plus 5% interest was
held back for indemnification purposes as a receivable due by January 31,
2007. The reported gain was net of transaction costs including severance pay
of $1,176,443, consulting fees of $1,029,930 and legal and shareholder meeting
costs of $195,559. A reserve of $443,561 was taken on the $1,000,000
receivable as BHP Billiton has alleged losses suffered due to environmental
clean up costs. As per the terms of closing, Jaguar was reimbursed $797,219 of
exploration expenditures incurred in Guatemala between October 1, 2005 and
January 31, 2006. Also included in revenue was interest of $1,088,825 compared
to $411,514 the prior year. The increase was due to the investment of the
funds received from the sale of Jaguar, S.A.
Total expenses increased from $2,904,720 in 2005 to $4,747,641 in 2006.
Operating expenses (excluding the write-offs of exploration properties costs
and metallurgical process costs) were approximately $4,141,000, up from
approximately $2,322,000 last year. The increase is attributable to legal fees
and shareholder costs related to the change in control of the Company during
the year, as well as severance costs for employees whose severance pay was not
included as transaction costs in the sale of Jaguar, S.A. Exploration property
costs of $606,994 were written off in 2006 when the Company terminated an
alliance agreement with BHP Billiton relating to two mining property option
agreements for the exploration and development of nickel mining properties in
Canada, Alaska, the mid-continental United States and Greenland. In 2005, the
Company wrote off $582,852 of costs associated with its Atmospheric Chloride
Leach Process and pyrometallurgical process as it was determined that the
processes were not economically viable for use in the Company's Guatemalan
As at December 31, 2006 the Company had cash and term deposits of
$26,325,360 compared with $12,630,047 on December 31, 2005.
Jaguar is a Canadian merchant bank that invests in undervalued small
capitalization companies in a variety of industry sectors. Jaguar's shares are
traded on the TSX under the symbol JNI.
The Toronto Stock Exchange does not accept responsibility for the
adequacy or accuracy of this news release. This news release may contain
certain forward looking statements which involve known and unknown risks,
delays, and uncertainties not under Jaguar's control which may cause actual
results, performances or achievements of Jaguar to be materially different
from those implied by such forward looking statements.
For further information:
For further information: Vic Alboini, Chairman and President, Website:
www.jaguarnickel.com, 2705 - 401 Bay Street, P. O. Box 183, Toronto, Ontario,
M5H 2Y4, Tel.: (416) 363-1124, Fax: (416) 360-0728; Trading Symbol on the TSX: