International Nickel Ventures Corporation Reports 2005 Results
Toronto, Ontario, Canada – April 13, 2006 – International Nickel Ventures Corporation (“INV”) (TSX: NVC) reports its results for the year ended December 31, 2005 (see INV’s audited 2005 financial statements and MD&A filed on SEDAR at www.sedar.com and on the Company’s website at www.nickelventures.com).
INV is a Canadian mineral resource company focused on the acquisition, exploration and development of nickel projects in Brazil. Its primary asset is an option to acquire, with partner and operator Teck Cominco Limited, a 75% interest in two advanced-stage nickel laterite deposits, the Santa Fé and Iporá, in the Goias nickel camp of Brazil. In addition, INV has 100% ownership in an extensive land package of prospective nickel properties in Goias and Para States.
As the Company’s mineral properties are in the exploration stage and are not in production, INV did not have any revenues and incurred a loss of $1,300,828, or $0.28 per share, in 2005, compared to $347,557, or $0.77 per share, in 2004. Included in the loss for 2005 is $231,262 for general exploration expenses, $106,719 for mineral property and deferred exploration costs written off and $450,000 for a services and financial support fee which was satisfied by way of issuing INV shares. Cash flow from operating activities was a net outflow of $470,888 in 2005, compared to $428,493 in 2004.
Pursuant to an agreement with Teck Cominco, INV granted to Teck Cominco the option to earn a 73% interest in a subsidiary of the Company, International Nickel Ventures Inc. (“INVI”) which, in turn, holds an option to acquire a 75% interest in the Santa Fé and Iporá properties in Brazil. During the year, Teck Cominco advanced an aggregate amount of $13,898,091 for exploration work and option payments on the Santa Fé and Iporá properties. On December 12, 2005, Teck Cominco acquired its full interest in INVI and Teck Cominco now holds 73% and INV holds 27% of all issued and outstanding common shares of INVI. Accordingly, effective December 12, 2005, INV no longer consolidates its former subsidiary INVI, and now accounts for its investment in INVI under the equity basis. As a result, subsequent to December 11, 2005, the Corporation includes only its 27% equity interest in the earnings or loss of INVI.
On March 17, 2006, INV completed an initial public offering (IPO) and became listed on the Toronto Stock Exchange under the trading symbol “NVC”. In connection with the IPO, and after the exercise of the over-allotment option, INV issued 21,120,000 common shares for gross proceeds of $25,344,000. INV now has 34,452,300 common shares issued and outstanding.
Teck Cominco has budgeted a $10.0 million work program for the Santa Fé and Iporá properties in 2006, INV’s share of which is $2.7 million. In addition, INV has budgeted approximately $1.3 million for the exploration of its other mineral properties in 2006. Pursuant to an agreement, Teck Cominco is to subscribe for additional shares of INV in the amounts needed to fund the Santa Fé and Iporá option payments in 2006. INV is well positioned to conduct all of its currently planned business activities in 2006.
This press release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company’s ability to control or predict which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. In this release the section entitled “2006 Outlook” contains forecasts subject to various risks. Accordingly, readers should not place undue reliance on forward-looking statements. For a more detailed discussion of such risks and other factors, refer to INV’s filings with Canadian securities regulators available on www.sedar.com or the Company’s website at www.nickelventures.com.