/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
CALGARY, Aug. 24 /CNW/ - Whitemud Resources Inc. ("Whitemud" or the
"Company") (WMK - TSX Venture Exchange) today reported financial results and
progress update for the period ended June 30, 2007.
The Company had no operating revenues and incurred a loss of $748,760
($0.05 per share) for the quarter ended June 30, 2007, compared to a loss of
$357,619 ($0.06 per share) for the quarter ended June 30, 2006. For the six
months ended June 30, 2007, the Company incurred a loss of $1,262,437 ($0.09
per share) compared to a loss of $568,101 ($0.09 per share) for the six months
ended June 30, 2006. A significant portion of the increased loss over the
comparative period relates to non-cash stock based compensation expense of
$226,327 that was booked in the quarter.
As of June 30, 2007, the Company had working capital of $29,002,062
including cash of $29,839,403, compared to working capital of $103,599 and
cash of $1,479,770 for the year ended December 31, 2006.
The Company earned interest income of $392,039 for the quarter ended
June 30, 2007 and $570,254 for the six months ended June 30, 2007 from
investing excess cash in Guaranteed Investment Certificates compared to $Nil
for the quarter ended June 30, 2006 and $11,204 for the six months ended
June 30, 2006.
During the quarter and year to date period ended June 30, 2007, the
Company capitalized costs of $10,072,243 and $14,006,652 respectively to the
Gollier Creek processing plant compared to $55,988 and $100,748 respectively
for the quarter and year to date period ended June 30, 2006. The Company also
capitalized costs directly related to product and process development as
deferred development costs totalling $227,870 for the quarter and $344,369 for
the year to date period ended June 30, 2007 compared to $150,859 and $403,629
respectively for the quarter and year to date period ended June 30, 2006.
The financial summary should be read in conjunction with the Company's
June 30, 2007 unaudited financial statements and Management's Discussion and
Analysis, both of which are available on www.sedar.com.
Construction of the Company's Gollier Creek processing plant in Wood
Mountain, Saskatchewan is on schedule and projected costs are within
Whitemud's budget of $47.8 million as use of proceeds in the Company's
prospectus dated February 15, 2007, compared to $54.6 million used to evaluate
the project in the Company's National Instrument 43-101 Technical Report.
Completion of the plant is projected by the end of December 2007, followed by
commissioning in early 2008. Other significant achievements were:
- Mine preparation and overburden stripping has been completed and a
mining contractor will commence mining operations by the end of
August 2007 to stockpile ore at the plant to be used for the plant
start up at the beginning of 2008.
- The Company has drilled 54 new core holes to explore and delineate
additional kaolin ore resources. It is expected that 15-20
additional core holes will be drilled by September 30, 2007. Detailed
analysis is underway to quantify the success of the program.
- The Company recruited 4 key senior managers and has now completed its
senior management team.
- Discussions to advance purchase arrangements are continuing with key
customers to determine volumes and transportation and terminal
This press release may contain forward-looking statements which may
include estimates, plans, expectations, opinions, forecasts, projections,
guidance or other statements that are not statements of fact, including
without limiting the generality of the foregoing, statements made under the
heading "Progress Update" and with respect to timing for the delivery of major
equipment, completion of commissioning of the processing plant and
establishing a presence in the Company's key market areas. There is no
assurance that the expected timeframes will be met as all are subject to risks
which include, without limitation, the possibility for equipment failures,
labor disputes, work stoppages, equipment delivery delays, and the potential
for delays arising from injuries and safety concerns at the worksite. 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. Results of Whitemud may be affected by a variety of
variables and risks associated with the mining and mineral processing industry
such as loss of market, competition, ability to access sufficient debt and
equity capital from internal and external sources, ability to expand in the
marketplace, exploration and development plans and results, anticipated
capital expenditures and financing thereof, timing of applications and
approvals. As such the future plans and objectives of Whitemud are
forward-looking statements that involve risks and uncertainties and may be
based on assumptions that could cause actual results to differ materially from
those anticipated or implied in such statements. 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 further information:
For further information: Burl Aycock, Chairman and CEO, Whitemud
Resources, Telephone (403) 695-1012; Kevin Graham, Vice-President,
Communications, Whitemud Resources, Telephone (403) 517-0041; Kelly Babichuk,
President and COO, Whitemud Resources, Telephone (403) 517-0042; Ron Love,
Vice-President, Finance and Chief Financial Officer, Whitemud Resources,
Telephone (403) 517-0043