Jun. 29, 2011 (Filing Services Canada) -- Alexander Nubia International Inc. (AAN - TSX Venture), ("AAN" or the "Company"), on June 29, 2011 has filed on www.sedar.com its interim financial report for the first quarter ended March 31, 2011. In this release, we provide a comparative summary of the quarter's operational and financial highlights. 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.
First 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.
Key Operational and Financial Highlights of the Quarter
For the three months ended March 31, 2011, the Company incurred a loss of $175,688 (three months ended March 31, 2010 - $13,196) and has an accumulated deficit of $1,956,004 since incorporation, after taking into account $146,574 in adjustments required as a result of the adoption of IFRS on January 1, 2011. Exploration expenditures on our primary target, the Abu Marawat Property, for the three months ended March 31, 2011 amounted to $741,571 (three months ended March 31, 2010 - $104,101). The increase in operating loss and exploration expenditures is primarily due to commencement of drilling at the Abu Marawat property.
At March 31, 2011, the Company had cash on hand of $1,696,611, comprised of cash of $661,516, and restricted cash of $1,035,095. The restricted cash is pledged in support of a guarantee provided to the Egyptian Mineral Resource Authority and is released as exploration expenditures are incurred at the Abu Marawat concession.
Subsequent to the quarter ended March 31, 2011, the Company completed a short form prospectus offering on May 17, 2011 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 approximately $4.3 million. The net proceeds of the offering, along with the cash on hand at March 31, 2011, will be used to advance its drilling program on the Abu Marawat Concession, to fund operating costs that support exploration activities and for working capital for general corporate purposes. (NOTE: See "Use of Proceeds" on page 10 of the prospectus.)
Objectives for the Coming Year
The business objectives of the Company for the next 12 months will consist of the execution of the Stage 2 exploration program, and an initial NI43-101 resource statement, as well as evaluating other regional opportunities for exploration and development of precious and base metals mineral targets. With the recent completion of the previously announced CAD$5,000,000 financing, the Company is in a favourable position to execute on all of these objectives.
Cautionary Note Regarding Forward-Looking Statements
The securities of the Company 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 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.
A. (Alexander) Massoud, President & Chief Executive Officer
Alexander Nubia International Inc. +1 877 607 4747;
amassoud@alexandernubia.com; www.alexandernubia.com
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Source: Alexander Nubia International Inc. (TSX.V - AAN) http://www.alexandernubia.com
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