NELSON, BC, Aug. 29 /CNW/ - Oromonte Resources Inc. (ORR:TSX-V; OF6:FRA)
announces its financial results for the 2nd quarter ended June 30, 2007.
The financial results for the quarter ended June 30, 2007 reflect the
costs of property acquisition, exploration expenses and administrative costs
for managing the Company's properties and associated activities. Operating and
general expenses were $384,001 for the quarter resulting in a loss of
$401,350. This compares with expenses for the same period in 2006 of $124,807
and a loss of $123,868. The primary reasons for the increase in expenses are
higher travel expenses relating to visits to Ecuador by senior management,
public relations, legal costs and stock-based compensation. There was an
increase in costs for public relations and promotion to $46,926 ($7,241 in
2006) for the quarter. During the quarter 445,000 options were granted to a
director, an officer and a consultant of the Company. Office and general
expenses increased to $88,066 for the quarter ($79,470 in 2006). The increased
cost is due to the Company's increased activity. The Company accrued $40,296
(less direct costs of $45,411) in gold revenues for the second quarter of
2007. The revenues have been written off against deferred cost since the
revenue arose during the exploratory and testing phase within the Goldstar
Mine. Revenues will be shown in the Statement of Operations when the Company
commences commercial production.
At the present time, Oromonte finances exploration and development
activities by raising capital from equity markets. The Company's working
capital was $2,579,722 as at June 30, 2007, as a result of equity financing
during 2006. This is an improvement over the second quarter of 2006 when the
working capital was $1,717,828 at June 30, 2006.
The Company has sufficient working capital to meet all of its foreseeable
obligations based on its plan for the next twelve months. Planned expenditures
for the geophysical and drilling exploration program in the third quarter are
now expected to be deferred until the fourth quarter and first quarter of 2008
to enable the required environmental studies to be completed and any related
issues with regulatory agencies to be resolved.
On August 2, 2007 the Company established an additional 100% owned
subsidiary, Orosources Minerals S.A. as a general operations company. In the
third quarter of 2007 the Company has been transferring assets in Ecuador into
the 100% owned Ecuadorian subsidiaries, Oromonte Resources S.A., Marissaro
Minerals S.A, and Monteminerals, S.A. to facilitate potential future joint
ventures and to aid in corporate development.
On August 22, 2007 the Company signed a Letter of Intent with Canuc
Resources Corporation to effectively transfer all of its interest in its
Nambija, Ecuador gold mining property.
The Company's interim Consolidated Financial Statements and Management
Discussion and Analysis (MD&A) for the quarter ended June 30, 2007 are
available at www.sedar.com.
Oromonte is a mineral exploration company engaged in the acquisition,
development and exploration of mining properties in Ecuador. The Company has
acquired mining concessions through lease and outright purchase consisting of
four consolidated properties namely: Chimbuza Property, Nambija Property,
Pangui Property, and Virgen del Cisne Property. These projects are in early
stage development with environmental studies and/or exploration programs
currently being implemented to identify drilling targets. The Nambija property
interests are now being transferred to Canuc Resources Corporation.
The Company trades common shares and warrants on the TSX Venture Exchange
under the symbol ORR and common shares on the Frankfurt Stock Exchange under
the symbol OF6.
For further information you can visit the Company's website at:
The TSX Venture Exchange has not reviewed, and does not accept
responsibility for the adequacy or accuracy of this release.
No stock exchange, securities commission or other regulatory authority
has approved nor disapproved the information contained herein. The News
Release includes certain "forward looking statements". All statements other
than statements of historical fact, included in this release, including,
without limitation, statements regarding potential mineralization and
reserves, exploration results, and future plans and objectives of Oromonte,
are forward looking statements that involve risks and uncertainties. There can
be no assurance that such statements will prove to be accurate and actual
results and future events could differ materially from those anticipated in
such statements. Important factors that could cause actual results to differ
materially from Oromonte's expectations are exploration risks detailed from
time to time in the filings made by Oromonte with securities regulations.
For further information:
For further information: Bruce Cottingham, CEO Oromonte Resources Inc.,
Suite 206, 507 Baker Street, Nelson, British Columbia, Canada, V1L 4J2, Tel:
(250) 352-9923, Fax: (250) 352-9926