International Nickel Ventures corporation reports 2006 results
TORONTO, Ontario, Canada: March 30, 2007 – International Nickel Ventures Corporation (“INV” or “Company”) (TSX: INV) reports its financial results for the year ended December 31, 2006 (See INV’s audited 2006 financial statements and MD&A filed on SEDAR at www.sedar.com and on the Company’s web site at www.nickelventures.com).
INV is a Canadian mineral resource company focused on the acquisition, exploration and development of nickel laterite and sulphide projects in Brazil.
The Company’s mineral properties are in the preliminary to advanced stages of exploration and are not in production, therefore INV has no revenues and incurred a loss of $3,762,001 or $0.13 per share in 2006, compared to a loss of $1,300,828 or $0.28 per share in 2005. The 2006 loss includes $628,341 for general exploration expenses, a write off of mineral properties and deferred exploration of $1,630,787 and general and administrative expenses of $1,480,190. Cash flow from operating activities was a net outflow of $1,412,825 compared to a net outflow of $470,888 last year.
The cash balance at year end was $13.8 million, compared to $nil at year end 2005 which was pre-IPO. Working capital at the end of 2006 was $13.5 million, compared to a negative working capital of $1.8 million at December 31, 2005.
The Company’s most advanced project is an option to acquire, with partner and operator, Teck Cominco Limited (“Teck”) a 75% interest in two advanced stage nickel laterite deposits, the Santa Fé and Iporá, located in Goiás State, Brazil. Goiás State hosts a cluster of several nickel laterite deposits of which the Santa Fé and Iporá deposits are the premier properties in this mining camp.
The option to acquire the Santa Fé and Iporá properties is indirectly held by International Nickel Ventures Inc. (“INVI”). INV accounts for its 27% interest in INVI under the equity basis. During 2006, the INV-Teck Santa Fé and Iporá Joint Venture completed an exploration program budgeted at $13.7 million. This expanded program was completed in December 2006 and consisted of approximately 38,300 metres of reverse circulation and diamond drilling on both the Santa Fé and Iporá properties.
In addition, INV also owns an extensive portfolio of 100%-owned laterite and sulphide nickel properties in Para, Tocantins and Goiás State.
In addition to the 2007 property option payments required under the Santa Fe/Iporá agreement, the joint venture has budgeted $14.8 million of exploration expenditures in 2007 (of which $8.5 million is committed to be spent by July 2007) with $4.0 million being INV’s share for the year. Included in the work plan is approximately 18,000 metres of additional drilling on both the Santa Fé and Iporá properties to define higher grade areas and to expand the deposits, support additional metallurgical testing of the Santa Fé and Iporá material and provide more data for resource re-evaluation and more detailed engineering to complete the scoping study. The budget also provides a contingency amount for possible test mining at Santa Fé over one of the higher grade areas to test mineralization continuity, grade control procedures and selective mining methods.
In addition, INV has budgeted $3.1 million for exploration of its other mineral properties and the identification and acquisition of additional nickel laterite and sulphide mineral properties.
General and administrative expense is budgeted to be approximately the same as in 2006.
INV has no debt and believes that it has sufficient funds on hand to conduct all of its currently planned business activities in 2007.
This press release contains certain forward-looking statements. These forward-looking statements are subject to 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 “2007 Outlook” and certain other statements contain forecast 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 filing with Canadian securities regulators available on www.sedar.com or the Company’s website at www.nickelventures.com.