TSX: CUX
VANCOUVER, Aug. 14 /CNW/ - Copper Mesa Mining Corporation ("Copper Mesa" or the "Company") (TSX:CUX) today reported its unaudited second quarter 2008 financial results.
Highlights for the quarter included:
- Acquired a metallurgical data package and descriptive report by
Metcon Research, Inc. on the Zonia Mine copper project, Arizona.
- Retained Tetra Tech Inc. (NASDAQ: TTEK) to coordinate, assemble
and prepare a definitive feasibility study on the Zonia Mine
copper project.
- Shareholders approved the Company's name change from "Ascendant
Copper Corporation" to "Copper Mesa Mining Corporation" and
subsequently began trading under the new symbol "CUX" on the TSX.
"Over the course of the past six months, we have made the transition from a copper exploration company to a near-term copper developer, with a diversified asset base in the Americas," said Gary E. Davis, President and CEO of Copper Mesa. "We are confident that the past-producing Zonia Mine, in particular, will create near-term value for our shareholders."
Financial Review:
The Company incurred a net loss of $4,022,000 and $5,371,000 for the six months ended June 30, 2008 and 2007, respectively. The primary reason for the decreased net loss was due to lower exploration expenditures of $1,379,000 and $3,036,000 for the six months ended June 30, 2008 and 2007, respectively. The Company has reduced its exploration efforts in Ecuador pending the finalization and adoption of a new Mining Law. The decreased exploration expenses in Ecuador for the period were partially offset by exploration efforts at the Company's newly-acquired Zonia Mine and Emerald Isle Mine copper properties. Offsetting the lower exploration costs were higher expenses related to legal, $188,000 and $35,000 for the three months ended June 30, 2008 and 2007, respectively, and audit and accounting fees of $135,000 and $61,000 for the three months ended June 30, 2008 and 2007, respectively. Both legal and audit and accounting fees are higher for the three months ended June 30, 2008 due to the increased activity related to post Redstone Mining Corporation (formerly St. Genevieve Resources Ltd.) acquisition issues. Travel and accommodation expense were also higher for the three months ended June 30, 2008 compared to the same period in 2007, $142,000 and $88,000, respectively, due to the trips to the newly-acquired Zonia Mine and Emerald Isle Mine copper properties and fund raising efforts during the three months ended June 30, 2008. Management and consulting services were $379,000 and $460,000 for the six months ended June 30, 2008 and 2007, respectively. The lower management and consulting services were due to decreased expenditures on social and political consulting fees primarily related to Ecuador.
As the Company has not commenced mining operations it had no operating revenues in either quarter ended June 30, 2008 or 2007. The Company earned interest income of $79,000 and $55,000 for the six months ended June 30, 2008 and 2007, respectively, and $19,000 for both the three months ended June 30, 2008 and 2007. The higher interest for the six months ended June 30, 2008 was due to higher overall cash balances.
As at June 30, 2008, the Company had cash and cash equivalents of $1,994,000. Approximately 36% of this amount is invested in liquid Canadian and United States dollar-denominated investments in investment grade debt and banker's acceptances with maturities of 90 days or less while the remaining 64% is on deposit at banking institutions. Other current assets include $53,000 in sales tax receivable, $67,000 in other receivables and $75,000 in prepaid expenses. The Company had $682,000 in accounts payable and accrued liabilities.
The Company used $3,877,000 in operating activities during the six months ended June 30, 2008, primarily for general and administrative expenses and exploration costs relating to the Ecuador and the newly-acquired Zonia Mine and Emerald Isle Mine copper properties. The Company had investing activities for the purchase of mineral property interests of $49,000, capital asset additions of $85,000 and transaction costs for the acquisition of Redstone Mining Corporation, net of cash of $833,000. Offsetting cash used in investing activities were proceeds from sale of capital assets of $29,000.
Management's discussion and analysis (MD&A), full financial statements and notes are available at www.sedar.com.
About Copper Mesa Mining Corporation
Copper Mesa is a mineral exploration and development company focused on advancing into production its two key past-producing copper properties, the Zonia and Emerald Isle Mines in Arizona. The Company will continue to expand its resource base through acquisition of additional properties of merit in the Americas.