NORTH VANCOUVER, BRITISH COLUMBIA–(Marketwire – May 31, 2012) – International Millennium Mining Corp. (the “Company”) (TSX VENTURE:IMI) reports its 1st Quarter 2012 financial statements and MD&A (the “Quarterly Report”) for the 1st Quarter ended March 31, 2012 (BC Form 51-102F1). Pursuant to the requirements of National Instrument 54-102, this news release provides a summary of the information contained in the Quarterly Report.
|Summary of 1st Quarter Results Ended March 31|
|International Financial Reporting Standards|
|Year to Date|
|General and Administrative Expenditures||$||106,163||$||153,617||$||106,163|
|(Gain) Loss on Foreign Exchange||$||16,775||$||1,624||$||16,775|
|Stock Based Compensation||$||–||$||18,000||$||–|
|Gain on Disposal – Mineral Properties||$||640,000||$||–||$||640,000|
|Net Income (Loss) for the Period||$||513,892||$||(154,165||)||$||513,892|
|Net and Comprehensive Income (Loss) for the Period|
|Net Loss Per Share||$||0.01||$||(0.00||)||$||0.01|
|International Financial Reporting Standards|
|As at||March 31,|
|December 31, 2011|
|Deferred Mineral Property Expenditures||$ 5,405,161||$ 5,044,945|
|Common Shares Outstanding||93,611,346||89,636,498|
|Fully Diluted Shares Outstanding||113,586,721||103,426,723|
At March 31, 2012, the Company had a total of 93,611,346 common shares outstanding.
During the quarter ended March 31, 2012 the Company recorded a net income of $513,892 as compared to a net loss of $154,165 during the first quarter of fiscal 2011. The material variances during the periods are as follows:
- The Company realized a gain of $640,000 on the sale of the remaining 20% interest in the Hilda/Guadalupe property. IMMC received 4 million First Mexican Gold Corp. (“First Mex”) shares and a 2% NSR payable to IMMC with 1% re-purchasable by First Mex for US$1 million dollars;
- The Company recorded nil stock based compensation during the first quarter of fiscal 2011, as compared to $18,000 during the comparable period in fiscal 2011;
- The Company recorded a loss on foreign exchange of $16,775 during the first quarter of fiscal 2012, as compared to a loss of $45,566 in the first quarter of fiscal 2011, on the translation of our international subsidiaries;
- Promotion and trade show costs decreased to $21,303 in the first quarter 2012 from $34,973 in the first quarter of fiscal 2011. The primary difference is the $22,000 incurred in making a video during the first quarter of fiscal 2011; and
- Salaries and benefits increased $6,558 during fiscal 2012 due to additional administration required for its property record keeping, regulatory filings and other legal document filings.
During the quarter the Company issued 3,974,849 common shares pursuant to: the exercise of 50,000 stock options for proceeds of $5,000; the exercise of 3,569,265 warrants for proceeds of $359,927; and the exercise of 355,584 broker warrants for proceeds of $28,447.
The Company’s working capital deficit increased to $692,853 at March 31, 2012, as compared to a deficit of $594,901 at December 31, 2011.
General and Administration
Comparison of the Quarterly Results
Overall, there was a 21% decrease in general and administration expenses to $106,163, in the first quarter of fiscal 2012, from $154,165 in the first quarter of fiscal 2011, and a 48% decrease from $201,696 recorded in the fourth quarter of fiscal 2011. The primary reasons for the decrease are as follows:
- The Company recorded $18,000 stock based compensation during the first quarter of fiscal 2011 as compared to nil during the comparable period in fiscal 2012 and $2,000 recorded in the fourth quarter of fiscal 2011;
- The Company recorded a loss on foreign exchange of $16,775 during the first quarter of fiscal 2012, as compared to a loss of $45,566 in the first quarter of fiscal 2011 and a $67,729 loss recorded in the fourth quarter of fiscal 2011on the translation of our international subsidiaries;
- Promotion and trade show costs decreased to $21,303 in the first quarter 2012 from $34,973 in the first quarter of 2011. The primary difference was the $22,000 incurred in making a video during the first quarter of fiscal 2011. There was also a decrease of almost $6,100 from the $27,401 recorded in the fourth quarter of fiscal 2012, because of the higher expense for the trade show in New Orleans in that quarter;
- Salaries and benefits increased during the first quarter of fiscal 2012 to $14,870 from $8,312 recorded in the first quarter of fiscal 2011 due to additional administration required for its property record keeping, regulatory filings and other legal document filings;
- Filing fees increased during the first quarter of fiscal 2012 to $10,221 compared to $6,354 incurred in the fourth quarter of fiscal 2011 primarily because of additional TSX-V filings related to stock options and annual fees; and
- The Company incurred $19,945 in accretion of finance fees and interest accruals on the loan payable in the first quarter of fiscal 2012 and nil in the comparable period in fiscal 2011.and decreased from the $36,114 recorded in the fourth quarter of fiscal 2011.
The Company recorded a net income of $513,892 during the first quarter of fiscal 2012, as compared to a net loss of $154,165 during the first quarter of fiscal 2011. The primary reason for difference is a realized gain of $640,000 on the sale of the Company’s remaining 20% interest in the Mexico Hilda/Guadalupe property, to First Mex.
Nivloc Mine, Nevada Property
Having completed 34 drill holes to December 31, 2011, the Company is beginning to outline an Ag/Au un-mined mineralized zone measuring 1,200 feet along strike and 600 feet down dip, measured vertically. Drill hole results from hole 1 through hole 34 have been announced by the Company, and these results have been filed on SEDAR. They can be reviewed on the Company’s web site at www.immc.ca. An additional three holes were drilled during the quarter ending March 31, 2012. The core remains to be sampled and submitted for assay.
Simon Mine, Nevada Property
The Simon Mine is a former producing polymetallic mine, located in the Walker-Lane Trend south of Reno, Nevada. Shut down in the late 1960s, this project now presents itself as an exploration and development play offering both size and grade potential for long-term mining. Historical records of ore shipped from the 905 drift (89 rail cars) indicate average grades 12 oz Ag, 0.04 oz Au, 9% Pb, 5.7% Zn and 3% Cu (these historic figures are considered relevant and demonstrate the potential of the property, but need to be verified by the Company). The Company plans to carry out a Phase II drill program sometime in 2012.
Management is focused on precious metal polymetallic projects in the Americas and is working towards building a strong, stable and well financed mineral exploration and small mines mining company.
Concurrently with this news release, the Company is filing its 1st Quarter Report with the regulatory authorities through SEDAR (www.sedar.com), and has mailed it to shareholders who have requested copies and whose names appear on the Company’s Supplemental List. Additional information about International Millennium Mining Corp. and its mineral property interests, including technical reports, is available on the internet at the SEDAR website www.sedar.com, or on the Company’s website www.immc.ca.
International Millennium Mining Corp. (TSX VENTURE:IMI) is a mineral exploration and development company engaged in acquiring known smaller mine deposits, such as its Nivloc, Nevada silver-gold mine project, in the Americas, with the goal of advancing the properties to the mining stage. Emerging targets include silver, gold, copper, zinc and lead. The Company’s common shares trade on the TSX Venture Exchange under the symbol: IMI and on the Frankfurt Exchange under the symbol: L9J.
ON BEHALF OF THE BOARD
John A. Versfelt, President and CEO
Further information about the Company can be found on SEDAR (www.sedar.com) or by contacting Ms. Sheri Barton or Mr. John Versfelt.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, potential mineral recovery processes and other business transactions timing. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
Neither 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 release.