EurOmax Releases Third Quarter (September 30) Unaudited Financial Results
November 24, 2010 TSX.V. EOX Frankfurt. OMZ NEWS RELEASE
FOR IMMEDIATE RELEASE EurOmax Releases Third Quarter (September 30) Unaudited Financial Results
Vancouver, Canada: EurOmax Resources Limited (TSX-V: EOX) (“EurOmax” or, the “Company”) announced today the release of the financial statements and related management, discussion and analysis for the quarter ended September 30, 2010. Please refer to www.sedar.com for the complete set of financial statements, notes and MD&A. Highlights for the quarter include the following:
As of September 30, 2010 (see attached excerpt):
Cash balance - $2.8 million Accounts payable - $1.3 million Working capital - $2.3 million
For the quarter ended September 30, 2010 (see attached excerpt):
Net loss for the quarter - $5.8 million Shareholder meeting expense - $1.9 million Write-off of mineral properties - $3.5 million
Cash depletion – the $1.9 million cost of the contested shareholder meeting, which concluded on September 23, 2010, has significantly reduced the cash available for exploration programs and other corporate purposes. After payment of accounts payable and accrued liabilities as of September 30, the actual cash available was $1.5 million. The Company's new board of directors has factored this available cash balance into its ongoing transition process and corporate planning.
Property review – a formal review of all the Company’s prospects and properties was initiated in October and is expected to be completed shortly. Based upon a preliminary review of the exploration results on the properties to date, it was concluded that the Ceovishte property in Serbia and the Kazandol property in Macedonia would not justify any additional exploration expenditures by the Company. Accordingly, the $3.5 million carrying value of both these properties has been written off. There may be additional property write-offs pending the completion of the Company's review of its property portfolio.
Drilling program at Ilovitza, Macedonia – in order to drill a sufficient number of holes and gather the appropriate technical data to prepare a detailed application for a Mining Concession on this property before the Company's exploration permit expires in May 2011, the Company has an active drilling program in place which is expected to continue for at least the balance of 2010. This drilling program is the only drilling the Company is conducting pending the completion of the Company's review of its property portfolio.
Mark Gustafson, President & CEO, stated “The third quarter results reflect all the significant costs related to the contested shareholder meeting and the write-offs due to the lack of exploration success on two of the Company’s properties. Our current cash balance is approximately $1 million and we are continuing to implement our transition plan. The new board of directors of the Company would like to thank our CFO, Mr. Christopher Serin, for providing his professional and timely assistance in preparing these quarterly results.”
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For more information:
Mark Gustafson, President & CEO
(604) 454-8677 [email protected] For further information please visit www.EurOmaxresources.com.
Consolidated balance sheets (unaudited - prepared by management)
September 30 December 31, 2010 2009 $ $
Assets
Current assets Cash and cash equivalents 2,863,044 8,234,111 Accounts receivable, prepaids and deposits 780,561 689,580 3,643,605 8,923,691
| Investment (Note 8) | 221,519 | 475,190 |
| Restricted cash (Note 6) | 51,470 | 47,223 |
| Property and equipment (Note 7) | 6,325,969 | 7,240,205 |
10,242,563 16,686,309
Liabilities
Current liabilities Accounts payable and accrued liabilities 1,361,862 295,349 1,361,862 295,349
Shareholders' equity
| Share capital (Note 9) | 33,101,084 | 33,101,084 |
| Warrants | 897,038 | 897,038 |
| Contributed surplus | 1,785,872 | 1,613,272 |
| Accumulated other comprehensive (loss) income | (91,093) | 156,352 |
| Deficit | (26,812,200) | (19,376,786) |
8,880,701 16,390,960 10,242,563 16,686,309
Approved by the Board
(Signed) Mark G. Gustafson
Mark G. Gustafson, Director
(Signed) Donald R. Siemens
Donald R. Siemens, Director
Consolidated statements of loss (income)
(unaudited - prepared by management)
Three months ended Nine months ended September 30 September 30
2010 2009 2010 2009 $ $ $ $
Expenses
| General and administrative (Note 10) | 339,295 | 318,704 | 1,425,261 | 890,260 |
| Shareholder meeting (Note 10) | 1,863,333 | - | 1,863,333 | - |
| General exploration | 13,480 | 340,794 | 108,034 | 381,002 |
| Write-off of mineral properties | 3,521,055 | - | 3,521,055 | - |
| Stock-based compensation | - | 203,910 | 172,600 | 250,293 |
| Depletion, depreciation and accretion | 19,025 | 15,767 | 57,905 | 38,054 |
| Other | (5,482) | 1,470 | (7,496) | 1,130 |
| Foreign exchange loss | 32,020 | 317,651 | 291,551 | 339,964 |
| 5,782,726 | 1,198,296 | 7,432,243 | 1,900,703 |
Other expenses (income)
| (Gain) on conversion of note receivable | - | (73,070) | - | (70,316) |
| (Gain) on investment | - | (9,615) | - | (435,806) |
| Loss on stock option held | - | 2,281 | - | 4,058 |
| Loss (gain) on disposal of property and equipment | - | (3,684,548) | 4,440 | (3,684,548) |
| Interest (income) expense | (1,226) | 19,280 | (1,269) | 12,242 |
| (1,226) | (3,745,672) | 3,171 | (4,174,370) | |
| Net loss (income) and comprehensive loss (income) | 5,781,500 | (2,547,376) | 7,435,414 | (2,273,667) |
Net loss (income) and comprehensive loss (income) per share Basic and diluted 0.05 (0.02) 0.06 (0.03)
Weighted average number of shares Basic and diluted 120,062,039 119,062,039 120,062,039 80,996,202