Wescan Goldfields Inc. Announces First Quarter Results
NEWS RELEASE May 27, 2010 Stock Symbol: WGF: TSX-V Saskatoon, Saskatchewan
WESCAN GOLDFIELDS INC. ANNOUNCES FIRST QUARTER RESULTS
Wescan Goldfields Inc. (“Wescan” or the “Company”) reports the audited results of Wescan’s operations for the quarter ended March 31, 2010 have been filed and may be viewed at www.sedar.com. A summary of key financial and operating results for the year follows:
Highlights
- Announced completion of Phase 1 drilling on Hudson Bay and Pinehouse Lake, Saskatchewan coal properties
- Announced completion of a National Instrument 43-101 (“NI 43-101”) compliant Mineral Resource on its Jojay property
- Recently issued 3,461,539 units for gross proceeds of $450,000
- Issued and outstanding shares of 83,577,022 at May 27, 2010
Overview of activities
During the first quarter of 2010, Wescan announced the completion of Phase 1 drilling on its Hudson Bay and Pinehouse Lake coal properties in east central Saskatchewan (see Wescan News Release dated January 18, 2010) and also announced the completion of a NI 43-101 compliant gold resource for the Company’s Jojay Gold Project in northern Saskatchewan (see Wescan News Release dated February 4, 2010).
Results of Operations
For the quarter ended March 31, 2010 the Company recorded a net loss of $185,561 ($0.00 per share) compared to a net loss of $155,317 ($0.00 per share) for the same period in 2009. The Company’s net loss for the first 3 months of 2010 was the result of on-going general and administration expenditures while the net loss for the same period in 2009 was the result of on-going general and administration expenditures offset by the effect of future incomes taxes.
Selected financial highlights include:
| Consolidated Balance Sheets | As at | As at December 31, 2009 |
|---|---|---|
| March 31, | ||
| 2010 | ||
| Current assets | $ 215,203 | $ 416,799 |
| Capital and other assets | 7,122,224 | 7,095,356 |
| Current liabilities | 743,026 | 738,725 |
| Future income tax liability | 163,336 | - |
| Share capital and warrants | 14,924,742 | 15,088,078 |
| Contributed surplus | 1,650,387 | 1,643,855 |
| Deficit | 10,144,064 | 9,958,503 |
| Consolidated Statements of Loss and Comprehensive Loss | For the Quarter | For the Quarter Ended March 31, 2009 |
|---|---|---|
| Ended March 31, | ||
| 2010 | ||
| Interest and other income | $ 9,887 | $ 2,535 |
| Operating expenses | 195,448 | 229,833 |
| Loss for the period before other items | 185,561 | 227,298 |
| Net and comprehensive loss for the period | 185,561 | 155,317 |
| Loss per share | 0.00 | 0.00 |
| Consolidated Statements of Cash Flows | For the Quarter | For the Quarter Ended March 31, 2009 | |
|---|---|---|---|
| Ended March 31, | |||
| 2010 | |||
| Cash flows from operating activities | $ (91,930 | ) | $ (208,725) |
| Cash flows from investing activities | (47,486 | ) | 7,819 |
| Decrease in cash and cash equivalents | (139,416 | ) | (200,906) |
| Cash and cash equivalents – beginning of period | 289,605 | 2,549,435 | |
| Cash and cash equivalents – end of period | 150,189 | 2,348,529 |
Outlook
The Company is currently evaluating financing options to allow it to pursue exploration programs of its highly prospective coal properties as well as to continue exploration on its portfolio of gold properties. Wescan’s focus over the next twelve months will be the continued exploration on the Hudson Bay and Pinehouse Lake coal projects. The Company will continue to evaluate the potential for the acquisition of other mineral properties that fit its strategic direction. Management is confident the Company will have sufficient access to financial markets to continue its planned activities in 2010.
Technical Information
All technical information in this report has been prepared under the supervision of Kirsten Marcia, Professional Geoscientist in the Province of Saskatchewan, and is the Company’s “Qualified Person” under the definition of NI 43-101.
Caution Regarding Forward-looking Information
This press release contains forward-looking statements within the meaning of certain securities laws, including the "safe harbour" provisions of Canadian Securities legislation and the United States Private Securities Litigation Reform Act of 1995. The words "may," "could," "should," "would," "suspect," "outlook," "believe," "plan," "anticipate," "estimate," "expect," "intend," and words and expressions of similar import are intended to identify forward-looking statements, and, in particular, statements regarding Wescan's future operations, future exploration and development activities or other development plans contain forward-looking statements. Forward-looking statements in this press release include, but are not limited to, the ability to raise funds to pursue exploration activities, the use of such funds, and the acquisition and exploration of additional properties.
These forward-looking statements are based on Wescan's current beliefs as well as assumptions made by and information currently available to it and involve inherent risks and uncertainties, both general and specific. Risks exist that forward-looking statements will not be achieved due to a number of factors including, but not limited to, developments in world coal and gold markets, risks relating to fluctuations in the Canadian dollar and other currencies relative to the US dollar, changes in exploration, development or mining plans due to exploration results and changing budget priorities of Wescan, the effects of competition in the markets in which Wescan operates, the impact of changes in the laws and regulations regulating mining exploration and development, judicial or regulatory judgments and legal proceedings and operational risks and the additional risks described in Wescan's most recently filed annual and interim MD&A, news releases and technical reports. Wescan's anticipation of and success in managing the foregoing risks could cause actual results to differ materially from what is anticipated in such forward-looking statements.
Although management considers the assumptions contained in forward-looking statements to be reasonable based on information currently available to it, those assumptions may prove to be incorrect. When making decisions with respect to Wescan, investors and others should not place undue reliance on these statements and should carefully consider the foregoing factors and other uncertainties and potential events. Unless required by applicable securities law, Wescan does not undertake to update any forward-looking statement that may be made.
For further information please contact:
Mr. Darren Anderson Mr. Harvey J. Bay President Chief Financial Officer 300 – 224 4th Avenue South OR 300 – 224 4th Avenue South Saskatoon, SK S7K 5M5 Saskatoon, SK S7K 5M5 PH: (306) 664-2422 PH: (306) 664-2422 FAX: (306) 667-3557 FAX: (306) 667-3557
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