Whitemud Resources Reports 2009 First Quarter Financial Results


    CALGARY, May 29 /CNW/ - Whitemud Resources Inc. ("Whitemud" or "the
Company") (TSXV:WMK) presents summary financial results for the first quarter
ending March 31, 2009.

    Financial highlights and results for the quarter ended March 31, 2009:

    -   The Company modestly increased its sales generating $101,431 in
        revenues for the quarter ended March 31, 2009. Net of distribution
        and cost of goods sold, a modest margin of $9,097 was achieved.
    -   The Company had a working capital deficit at March 31, 2009 of
        $530,102, including a cash balance of $166,329.
    -   In order to fund the working capital deficit, a debt placement was
        finalized and announced on May 26, 2009, whereby Directors and Senior
        Officers loaned the company $430,000.
    -   The Company plans to raise additional debt financing .
    -   Net loss for the quarter ended March 31, 2009 amounted to $1,585,181
        ($0.09 per share) compared to $1,920,688 ($0.12 per share) for the
        quarter ended March 31, 2008. The decreased loss arose primarily from
        decreased stock-based compensation expense and lower salaries and
        benefits in the current quarter.
    -   The Company substantially completed a series of capital upgrades
        during the quarter aimed at improving the effectiveness and
        efficiency of the plant operations. The plant and mine operation were
        temporarily shut-down for the entire quarter while the upgrades were
        conducted. During the quarter, sufficient inventory was on hand to
        support increased sales volumes. A summary of financial results is
        presented below:

                                                         For the Month
    Income Statement Summary                                 Ended
                                                     March 31,     March 31,
                                                       2009          2008
                                                        $             $
    Product Sales                                      101,431             -
    Interest and miscellaneous income                   39,428        48,629
    Expenses                                         1,633,706     1,969,317
    Non-cash stock based compensation expense
     (included above)                                  332,422       629,010
    Net loss and comprehensive loss                  1,585,181     1,920,688
    Net loss per share                                    0.09          0.12

                                                       As at         As at
                                                     March 31,   December 31,
                                                       2009          2008
    Balance Sheet Summary                               $             $
    Working capital                                   (530,102)    1,892,302
    Total assets                                    71,241,522    70,718,171
    Shareholder equity                              65,871,960    67,052,501

    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

    The TSX Venture Exchange does not accept responsibility for the adequacy
    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 under the
heading "Financial highlights and results for the quarter ended March 31,
2009" and in particular, the prospects of any additional financing. There can
be no assurance that the Corporation's efforts in this regard will be
successful as it is subject to, among other things, the current economic
conditions affecting the debt and equity markets. The statements are made in
reliance on the assumption that debt and equity markets will not experience
further volatility and that the Company has sufficient time to pursue a
financing. 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

For further information:

For further information: Burl Aycock, Chairman & 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; Kevin Graham, Vice
President, Communications, Whitemud Resources, Telephone: (403) 517-0040

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890