INV Metals Provides Exploration Update and Reports Q1/2011 Results
TORONTO, ON – May 26, 2011 – INV Metals Inc. (“INV Metals” or “Company”) (TSX: INV) provides an exploration update and reports its financial results for the three month period ended March 31, 2011 (see INV Metals’ unaudited 2011 interim consolidated financial statements and MD&A filed on SEDAR at www.sedar.com and on the Company’s web site at www.invmetals.com).
Q1/2011 Results and Transition to IFRS
The Company recorded a net loss of $531,232 or $0.01 per share for the three month period ended March 31, 2011 (“Q1/2011”), compared with a net loss of $830,882 or $0.02 per share for the corresponding period ended March 31, 2010 (“Q1/2010”). The Company’s cash balance as at March 31, 2011 was $18.8 million, compared to $21.3 million at year end 2010; the decrease was mainly due to the Company’s exploration expenditures on its properties in Namibia and Brazil. The Company believes it has sufficient funds to conduct all of its currently planned exploration and business activities in 2011.
The Company’s Q1/2011 financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”). The Company is required to consistently apply the IFRS accounting policies used to prepare its Q1/2011 financial statements to all other periods presented in the financial statements, as if these accounting policies had always been in effect, subject to certain transition elections permitted on the first time adoption of IFRS. For the purposes of preparing the Q1/2011 financial statements, the 2010 annual consolidated financial statements and its interim consolidated financial statements as at and for the three month period ended March 31, 2010, have been restated to conform with IFRS. A detailed analysis of the transition to IFRS, including the significant elections and adjustments made by the Company on the implementation of IFRS, is provided in Note 18 to the Q1/2011 interim consolidated financial statements.
Kaoko Property, Namibia
Drilling commenced at the Kaoko copper property, located in northwest Namibia in mid-May. At the Oruvandjai sandstone-hosted target, two diamond drill rigs are currently drilling a planned 1,400 metre program. At the Okohongo target, a planned 2,800 metre reverse circulation drill program is underway to test new geochemical and geophysical anomalies and to further test along strike of the known mineralization.
Rio Novo Property, Brazil
INV Metals is currently drilling on the Rio Novo North precious metals target in Brazil with two diamond drills. Following the completion of the program at Rio Novo North, drilling will commence on four copper targets at the southern Rio Novo claims and at INV Metals’ wholly-owned Itaporã target.
INV Metals entered into agreements with subsidiaries of Teck Resources Limited which provide INV Metals’ subsidiaries the right to acquire an initial 50% interest in the extensive Kaoko property located in northwest Namibia and an initial 50% interest in the Rio Novo property located in Brazil.
About INVTM Metals
INVTM Metals is an international mineral resource company focused on the acquisition, exploration and development of base and precious metal projects in Brazil, Namibia and Canada. Currently, INVTM Metals’ primary assets are: (1) its option to acquire 50% of the Rio Novo property, located in Brazil, (2) its option to acquire 50% of the Kaoko property, located in Namibia, (3) its 100% owned Itaporã gold properties, located in Brazil and (4) its option to acquire 50% of the Thorne Lake gold property, located in northwestern Ontario. Please also refer to the INVTM Metals’ website at www.invmetals.com to view additional details relating to the properties.
This press release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond INV Metals’ ability to control or predict which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. There is no guarantee that any drill targets or economic mineral deposits will be found on INV Metals’ properties. Forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of INV Metals to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks related to the actual results of current exploration activities, conclusions of economic evaluations, risks associated with mining and mineral exploration activities, uncertainty in the estimation of mineral resources, changes in project parameters as plans continue to be refined, future prices of metals, economic and political stability in Canada, Namibia and Brazil, environmental risks and hazards, increased infrastructure and/or operating costs, availability of future financing, labour and employment matters, and government regulation. For a more detailed discussion of such risks and other factors, refer to INV Metals’ annual information form filed with Canadian securities regulators available on www.sedar.com.