INV Reports Q1/2009 Results and Initiates Drilling At Itaporã Gold Project
TORONTO, ON – May 7, 2009 – International Nickel Ventures Corporation (“INV” or “Corporation”) (TSX: INV) reports its financial results for the three month period ended March 31, 2009 (see INV’s unaudited interim consolidated financial statements and MD&A filed on SEDAR at www.sedar.com and on the Corporation’s web site at www.nickelventures.com).
The Corporation recently received the necessary environmental permit required by Secretaria Estadual do Meio Ambiente (“SEMA”) in the Brazilian state of Pará to commence drilling at the Itaporã gold project. SEMA initiated the new permitting requirements in 2008.
Mr. Robert Bell, President and CEO, stated, “I am very pleased to announce that INV received the required permit to commence drilling on the promising Itaporã gold target in Para state. INV will immediately initiate the planned drill program consisting of six holes totaling 1,200 metres at an estimated cost of $300,000”. Mr. Bell added, “due to our prudent cost cutting measures, INV remains well positioned financially, with a cash balance of $16.9 million, to continue to aggressively seek out and evaluate mineral exploration projects and business development opportunities.”
The Corporation recorded a net loss of $536,097 or $0.01 per share for the three month period ended March 31, 2009 (“Q1/2009”), compared with a net loss of $1,018,642 or $0.02 per share for the corresponding period ended March 31, 2008 (“Q1/2008”). The Corporation recorded a future tax recovery of $980,481 during the quarter due to the renunciation of flow-through expenditures. Excluding the impact of the future tax recovery, the net loss for Q1/2009 increased by $497,936. The Q1/2009 loss includes a write off of mineral properties and deferred exploration of $357,300 and costs associated with the closure of the Brazil and Vancouver offices. General and administration expenses for Q1/2009 were $883,239, compared to $587,032 for Q1/2008. Interest income during the period totaled $33,311, which decreased by $191,677 from Q1/2008. Cash flow from operating activities was a net outflow of $644,112 in Q1/2009, compared to a net outflow of $822,785 in Q1/2008.
The cash balance at March 31, 2009, was $16.9 million, compared to $17.8 million at year end 2008; the decrease was mainly due to the Corporation’s exploration expenditures on its Montcalm property and costs associated with the closure of the Vancouver and Brazil offices. Working capital at the end of Q1/2009 was $16.3 million compared to working capital of $17.5 million at December 31, 2008.
The Corporation’s management is evaluating potential exploration projects and business development opportunities in order to identify suitable projects to deploy the Corporation’s resources. Given the current economic uncertainty and the related financing risk associated with junior exploration companies, management is reviewing potential investments using carefully constructed criteria.
The Corporation is required to spend $1.2 million by December 31, 2009, on one or more Canadian exploration projects in order to fulfill the requirements of its February 2008 flow-through financing. Management has identified a number of potential projects and is currently evaluating and prioritizing these projects. A decision with regards to how the Corporation will deploy the funds is expected in the second quarter.
INV is an international mineral resource company focused on the acquisition, exploration and development of base and precious metal projects in Brazil and Canada. Currently, INV’s primary assets are: (1) the advanced-stage Santa Fé-Iporá nickel laterite deposits located in Goiás State, Brazil; (2) the Montcalm nickel-copper property located contiguous to Xstrata Nickel’s operating nickel mine in the Timmins, Ontario area; (3) its nickel-copper-precious metals properties located in the ‘Ring of Fire’ area in northern Ontario and (4) its gold properties, located in Brazil. For further information on the Santa Fé-Iporá properties, please refer to the Technical Report of March 10, 2008, entitled “43-101F1 Technical Report On The Santa Fé And Iporá Nickel Laterite Properties In Brazil for International Nickel Ventures Corp.” which details all QA/QC procedures and interpretation of the exploration data and a summary description of the geology and is available on SEDAR at www.sedar.com. Please also refer to INV’s Management’s Discussion and Analysis dated May 6, 2009 and other technical reports on INV’s website at www.nickelventures.com to view additional details relating to the properties.
This press release contains certain forward-looking statements. These forward-looking statements are subject to variety of risks and uncertainties beyond INV’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 news release there is no guarantee that any drill targets or economic mineral deposits will be found on INV’s properties. Forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of INV 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, uncertainty in the estimation of mineral resources, changes in project parameters as plans continue to be refined, future prices of nickel and other minerals, economic and political stability in Canada and Brazil, environmental risks and hazards, increased infrastructure and/or operating costs, labour and employment matters, and government regulation. For a more detailed discussion of such risks and other factors, refer to INV’s annual information form with Canadian securities regulators available on www.sedar.com or INV’s website at www.nickelventures.com.