INV Reports Q2/2009 Results and Provides Operational Update
TORONTO, ON – August 10, 2009 – International Nickel Ventures Corporation (“INV” or “Corporation”) (TSX: INV) reports its financial results for the three and six month periods ended June 30, 2009 and provides an operational update (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).
Mr. Robert Bell, President and CEO, stated, “INV has solidified its transition to a premier international exploration company, having obtained the right to acquire an initial 50% interest in two world class exploration properties in partnership with Teck Resources Limited (“Teck”). Mr. Bell added, “We are extremely pleased that the strategic initiatives undertaken by management in mid-2008, culminated in the opportunity to explore the outstanding mineral potential at both the Rio Novo copper-gold property (“Rio Novo”) and the Kaoko copper property (“Kaoko”). With the acquisition of the options at Rio Novo and Kaoko, coupled with our 100% owned Itaporã gold project and the option to acquire an initial 50% in the Thorne Lake gold project, INV has amassed an exciting portfolio of exploration assets.”
The Corporation entered into two option agreements with Teck Resources Limited and its local subsidiaries which provide INV the right to acquire an initial 50% interest in both the Rio Novo copper-gold property in the Carajás mining district of Brazil and the Kaoko copper property in Northwest Namibia. The extensive Rio Novo property consists of approximately 29,000 hectares and is located in one of the most prolific mining camps in the world, while the Kaoko property is 9,000 km2 in a belt geologically analogous and potentially similar in size to the African Copper Belt. Closure of the transaction is subject to TSX and various governmental approvals. See INV’s press release dated August 4, 2009 for further details.
In July, 2009 INV completed a diamond drill program at the Itaporã gold project, located in Brazil. At the NS-07 target, four drill holes were completed totalling 735.1 metres, while at the NS-13 target a three hole program totalling 379.4 metres was completed. Results will be disclosed when assays have been received and interpreted.
The Corporation recorded a net loss of $635,594 or $0.01 per share for the three month period ended June 30, 2009 (“Q2/2009”), compared with a net loss of $1,468,861 or $0.03 per share for the corresponding period ended June 30, 2008 (“Q2/2008”). The decrease in the net loss was due mainly to decreased exploration activity, lower general and administration costs as a result of cost saving initiatives and lower stock-based compensation expense. General and administration expenses for Q2/2009 were $364,325, compared to $606,167 for Q2/2008. Interest income during the period totaled $9,353, which decreased by $183,390 from $183,903 in Q2/2008. Cash flow from operating activities was a net outflow of $614,502 in Q2/2009, compared to a net outflow of $549,291 in Q2/2008.
The cash balance at June 30, 2009, was $16.0 million, compared to $17.8 million at year end 2008; the decrease was mainly due to the Corporation’s exploration expenditures on its Montcalm and Itaporã properties. Working capital at the end of Q2/2009 was $15.7 million compared to working capital of $17.5 million at December 31, 2008.
INV 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, INV’s primary assets are: (1) its option to acquired 50% of the Rio Novo property, located in Brazil, (2) its option to acquire 50% of the Kaoko property, located in Namibia, (3) its Itaporã gold properties, located in Brazil (4) its option to acquire 50% of the Thorne Lake gold property, located in northwestern Ontario; (5) the Montcalm nickel-copper property located contiguous to Xstrata Nickel’s operating nickel mine in the Timmins, Ontario area; and (6) its nickel-copper-precious metals properties located in the ‘Ring of Fire’ area in northern Ontario. Please also refer to INV’s Management’s Discussion and Analysis dated August 7, 2009 on INV’s website at www.nickelventures.com and available on SEDAR at www.sedar.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.