Alexander Nubia International Announces Second Quarter Financial Results and Update on Key Project in Egypt
- Advances flagship Abu Marawat project -
Toronto, Ontario CANADA, August 26, 2011 /FSC/ - Alexander Nubia International Inc. (AAN - TSX Venture)("AAN" or the "Company"), today reported its financial results for the three- and six-month periods ended June 30, 2011. All amounts are in Canadian currency unless otherwise noted.
"Our second quarter was among our most active to date," said Alexander Massoud, President and CEO of Alexander Nubia International Inc. "The results of our ongoing drilling programs, which extended multiple sub parallel vein systems and intersected additional veins at depth, continue to validate our belief that Egypt's Eastern Desert is resource rich. We are well on the path to developing a 43-101 compliant inferred resource estimate as a result of the successful $4.3 million capital raise that will fund our exploration activities through to the next milestone of the Company, a 43-101 resource statement."
Key Operational and Financial Highlights of the Quarter
* Completed Stage 1 - 7,500 metre diamond drill program in Q2-2011;
* Advanced the Abu Marawat property by tracing the mineralization of the CVZ and FIN vein over strike lengths of 900 and 600 metres, respectively, with both vein systems open along strike and at depth; and discovered other vein systems at depth;
* Intersected high-grade gold-silver-copper-zinc mineralization, AAM-035: 6.0 metres core length grading 16.8 g/t Au, 420 g/t Ag, 0.83% Cu, and 5.13% Zn;
* Received encouraging results from Stage 1 drilling, which provides a sound basis to proceed with an additional 5,000 metres of drilling; the results of which will form the basis for our first NI 43-101-compliant resource estimate to be completed by year-end 2011;
* Completed 2,661 metres of Stage 2 - 12,500 metre diamond drill program (as of the date of this release a further 1,396 metres has been drilled, for a total of 4,057 metres of the Stage 2 program);
* Invested $1.7 million in exploration costs in its flagship Abu Marawat property; and
* Generated gross proceeds of $5 million (net $4.3 million) via an underwritten prospectus financing at $0.20 per share
Selected Financial Metrics
-***-
-------------------------------------------------------------------------
In thousands except share data Q2 2011 Q2 2010 6-months 6-months
2011 2010
-------------------------------------------------------------------------
Exploration expenses $1,716 $76 $2,458 $179
Net earnings (loss) $(223) $(56) $(399) $(69)
Earnings (loss) per basic share $(0.002) $(0.001) $(0.005) $(0.001)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
June 30, 2011 Dec. 30, 2010
-------------------------------------------------------------------------
Total cash on hand (Cash cash $4,398 $2,086
equivalents plus restricted cash)
Current liabilities $811 $345
Working Capital $3,780 $1,853
Total Assets $10,273 $5,407
-------------------------------------------------------------------------
-****-
Review of financial performance for the quarter
For the three months ended June 30, 2011, the Company incurred $1,716,124 in exploration expenditures (three months ended June 30, 2010 - $75,706, and three months ended March 31, 2011 - $741,571). This is reflective of a full quarter of drilling activity on the Company's primary target, the Abu Marawat Property. These expenditures bring total exploration costs for the six months ended June 30, 2011 to $2,457,695 as compared to $179,807 for the same period in 2010.
The Company, as is expected from a mineral exploration company, also incurred a loss of $222,873 for the three months ended June 30, 2011 (three months ended June 30, 2010 - $56,151), bringing its loss for the fiscal year to date ended June 30, 2011 to $398,561 as compared to 2010 of $69,347. It has an accumulated deficit of $2,178,877 since incorporation, after taking into account $146,574 in adjustments required as a result of the adoption of IFRS on January 1, 2011. The increases in exploration expenditures and ensuing operating loss over the same periods in 2010 are primarily due to commencement of drilling at the Abu Marawat property. The higher loss during the second quarter of 2011 relative to that in the first quarter of 2011 is because in the second quarter a full three months of drilling activity occurred, whereas in the first quarter drilling began partway through the period.
At June 30, 2011, the Company had cash on hand of $4,397,553, comprised of cash and cash equivalents of $3,357,474, and restricted cash of $1,040,079. The restricted cash is pledged in support of a guarantee provided to the Egyptian Mineral Resource Authority ("EMRA") and is released as exploration expenditures are incurred at the Abu Marawat Concession. On July 20, 2011 US$350,940 of the restricted cash was released by EMRA and made available to the Company for general operating purposes.
On May 17, 2011, the Company completed a short-form prospectus offering through a syndicate of underwriters led by Wellington West Capital Markets Inc. and including Cormark Securities Inc. and Industrial Alliance Securities Inc. An aggregate of 25,000,000 common shares in the capital of the Company were issued pursuant to the offering at a price of $0.20 per share for net proceeds of $4,349,020.
The cash on hand at June 30, 2011, will be used to continue the drilling program on the Abu Marawat Concession, to fund operating costs that support exploration activities and as working capital for general corporate purposes.
Outlook
"Our focus till the end of this year will be to complete our infill drilling program, which will form the basis of a NI 43-101 compliant inferred resource at our Abu Marawat Property," Mr. Massoud also said. "We will achieve this important milestone by leveraging our Egyptian operational expertise and our strong relationships with various stakeholders in the region. Over the longer term, we remain committed to our strategy of methodically developing our other projects, including the Hamama poly-metallic project, for the purpose of unlocking our full potential and establishing Alexander Nubia as a major player in Egypt's Eastern Desert."
The business objectives of the Company for the next 12 months are to:
(i) Explore and develop an economic resource based on the primary targets, Abu Marawat and Hamama properties;
(ii) Continue exploration of precious- and base-metals within the Arab Republic of Egypt's Eastern Desert at other targets within its concessions; and
(iii) Evaluate other regional opportunities for exploration and development of precious- and base-metal mineral targets.
Alexander Nubia will file its interim financial report for the second quarter ended June 30, 2011 and related management's discussion and analysis on www.sedar.com and on its website within prescribed regulatory timelines. Readers are advised that, due to the summary nature of this release, these highlights should be read in conjunction with our interim management's discussion and analysis, and the interim unaudited condensed consolidated financial statements.
Reporting Under New Accounting Standards
All publicly accountable enterprises in Canada were required to adopt new International Financial Reporting Standards ("IFRS"), replacing Canadian Generally Accepted Accounting Principles ("GAAP") effective January 1, 2011. This is the second quarter that the Company is reporting under these new standards.
About Alexander Nubia International Inc.
Alexander Nubia International Inc. (TSX-V: AAN) is a Canadian exploration and development Company focused on the exploration of precious and base-metal minerals in the Eastern Desert in Egypt. The Company holds two exploration concessions: Abu Marawat and Fatiri which cover a combined total area of 2,772.5 km2. The Abu Marawat concession includes the Abu Marawat, Hamama and Semna Projects. The Company is currently focused on the exploration of its Abu Marawat project, from which recent drilling carried out by the Company has confirmed the presence of precious and base-metal mineralization and greatly increased the size of the deposit over that reported historically. For more information please visit www.alexandernubia.com.
For more information on Alexander Nubia please contact:
A. Alexander Massoud
President and Chief Executive Officer
Egypt: +2 (0) 22 287 6914
Canada: +1 (877) 607-4747
Email: amassoud@alexandernubia.com
Donald M. Cameron, CA
CFO
Canada: +1 (877) 607-4747
Email: dcameron@alexandernubia.com
Nisha Hasan
TMX Equicom
416-815-0700 ext. 258
Email: nhasan@equicomgroup.com
Cautionary Note Regarding Forward-Looking Statements
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. The securities of Alexander Nubia International Inc. described herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view this release as a web page, please click on the following link:
http://www.usetdas.com/pr/alexnubia08262011.htm
Source: Alexander Nubia International Inc. (TSX.V - AAN) http://www.alexandernubia.com
Maximum News Dissemination by Filing Services Canada Inc. http://www.usetdas.com