International Millennium Mining Corp. Reports 3rd Quarter Results

International Millennium Mining Corp. (the “Company”) (TSX-V:IMI) reports its 3rd Quarter 2011 financial statements and MD&A (the “Quarterly Report”) for the 3rd Quarter ended September 30, 2011 (BC Form 51-102F1).  Pursuant to the requirements of National Instrument 54-102, this news release provides a summary of the information contained in the Quarterly Report.  

Summary of 3rd Quarter Results Ended September 30

 

International Financial Reporting Standards

 

3rd Quarter

Fiscal 2011

3rd Quarter

Fiscal 2010

Year to Date

Fiscal 2011

General and Administrative Expenditures

$

110,495

$

69,270

$

306,869

(Gain) Loss on Foreign Exchange

$

(127,078)

$

1,624

$

67,948

Stock Based Compensation

$

-

$

-

$

18,000

Write Down Mineral Properties

$

-

$

355,624

$

-

Net Income (Loss) for the Period

$

   12,597

$

(426,158)

$

(376,341)

Net and Comprehensive Loss for the Period

$

(19,903)

$

(426,158)

$

(497,341)

Net Loss Per Share

$

(0.00)

$

(0.00)

$

(0.00)

 

International Financial Reporting Standards

As at

September 30, 2011

December 31, 2010

 

 

Deferred Mineral Property Expenditures

$         4,339,15

$        2,333,517

Total Assets

    4,831,754

    3,248,611

Total Liabilities

   379,891

       460,321

Share Capital

14,851,809

12,717,896

Common Shares Outstanding

87,109,756

69,874,367

Fully Diluted Shares Outstanding

113,114,719

103,426,723


Summary Discussion

At September 30, 2011, the Company had a total of 87,109,756 common shares outstanding.

During the quarter ended September 30, 2011 the Company recorded a net income of $12,597 as compared to a net loss of $426,158 during the third quarter of fiscal 2010.  The material variances during the periods are as follows:

i)    The Company did not write down any resource properties in the third quarter, fiscal 2011, whereas it recorded a resource properties $355,624 write down in the third quarter of fiscal 2010;
ii)    The Company recorded a gain on foreign exchange of $127,078 during the third quarter on the translation of our international subsidiaries;
iii)    Salaries and benefits increased during the third quarter of fiscal 2011 due to additional administration required for its property record keeping, its regulatory filings and other legal document filings;
iv)    Filing fees increased during the quarter due to filing fees for the private placements and for the annual filing fees for the TSX.

During the first nine months of fiscal 2011 a total of 11,360,389 warrants and broker warrants and 850,000 stock options were exercised for proceeds of $1,176,313. These proceeds were used to fund the drill program on the Nivloc property and provide working capital.

The Company’s working capital has increased to a deficit of $11,211 at September 30, 2011. During the quarter:

i)     the Company closed a private placement totaling $900,000 including: $850,000 of non-flow-through units at $0.20 per unit and $50,000 of flow-through units at $0.25 per unit. Each unit is comprised of one (1) non flow-through or flow-through common share and one (1) non flow-through or one (1) flow-through, non-transferable share purchase warrant, respectively. Each full warrant entitles the holder to purchase an additional share in the capital stock of the Company for a period of two (2) years from the date of issuance, at $0.30 per share in the first year and $0.40 per share in the second year for non-flow through warrants, and at $0.35 per share in the first year and $0.45 per share in the second year for flow through warrants;

ii)    a further  792,500 warrants and  250,000 stock options were exercised for gross proceeds of $104,250.

With the exception of a $2,000 USD monthly property payment that is required for the Simon Property,  most property payments and contracted exploration expenditures  are being paid by joint venture partners or parties earning their interests in an IMMC property pursuant to an option agreement.  The Company is obligated to pay an annual payment for the Nivloc property, which payment has been paid for fiscal 2011.  During fiscal 2009, the Company transferred or eliminated all significant required expenditures and property payments with the Canadian Star acquisition of the High Lake and Electrum Lake, Ontario properties; the continuing Mexico joint venture; the termination of the Harrison Lake Property joint venture; and the termination of the Jason Property Agreement.

General and Administration

Comparison of the Quarterly Results

Overall, there was a 56% increase in general and administration expenses to $110,923 in the quarter ended September 30, 2011 from $70,894 in the third quarter of fiscal 2010 and a 33% increase from $83,816 in the second quarter of fiscal 2011. There are three reasons for the increase, 1) salaries increased due to the hiring of an additional person to complete the companies property and regulatory filings; 2) promotional materials and trade shows expenses increased due to attendance at an additional trade show in the quarter; 3) the Company’s filing fees increased dramatically because of increased private placements and other filings in the third quarter fiscal 2011.

The Company recorded a net income of $12,597 during the quarter ended September 30, 2011, as compared to a net loss of $(426,158) during the comparable period in fiscal 2010. The primary difference is related to  the $355,624 write down of mineral properties in fiscal 2010 and a foreign exchange is fiscal 2011.

Comparison of the Nine Month Results to September 30, 2011

During the first nine months of fiscal 2011 accounting and legal fees decreased by $35,627 to $29,996 as compared to $65,623 during the comparable period in fiscal 2010 as a result of the legal fees incurred on the litigation on the Simon Property and legal fees incurred on investigation on new properties during fiscal 2010.  Insurance costs increased in the nine month period ending September 30, 2011 to $14,322 compared to $8,215 in the comparable period in fiscal 2010 because of a new general liability policy acquired to insure the Company’s work on the Nivloc, Nevada property. There was an increase in promotion and marketing costs during the first nine months of fiscal 2011 to $84,155 as compared to $52,845 during the first nine months of fiscal 2010. The increase was a result of increased trade show costs and a marketing video prepared during 2011. Salaries and benefits increased by 45% to $34,974 in the nine month period in fiscal 2011 as compared to $23,966 in the comparable period in fiscal 2010.

The Company recorded $18,000 stock based compensation during the nine months period ending September 30, 2011 as compared to nil expense during the first nine months ending September 30, 2010.  

The Company recorded a net loss of $376,341 for the nine months ended September 30, 2011, as compared to a net loss of $650,683  for the quarter ended September 30, 2010. The differences are primarily the write down in mineral properties during fiscal 2010.  

Exploration Programs

Nivloc Mine, Nevada Property

Having completed 32 drill holes to November 15, 2011, the Company is beginning to outline an Ag/Au an un-mined mineralized zone measuring 1,200 feet along strike and 600 feet down dip, measured vertically. Drill hole results from #1 through hole #28 have been announced by the Company and these results have been filed on SEDAR and can be reviewed on the Company’s web site at www.immc.ca.

Simon Mine, Nevada Property

The Simon Mine is a former producing polymetallic mine, located in the Walker-Lane Trend south of Reno, Nevada. Shut down in the late 1960s, this project now presents itself as an exploration and development play offering both size and grade potential for long-term mining. Historical records of ore shipped from the 905 drift (89 rail cars) indicate average grades 12 oz Ag, 0.04 oz Au, 9% Pb, 5.7% Zn and 3% Cu. (These historic figures are considered relevant and demonstrate the potential of the property, but need to be verified by the Company). A drilling program began in February, 2010 and was completed in August, 2010. Results were reported for seven drill holes. The Company plans to carry out a phase II drill program sometime in 2012.

Management is focused on precious metal polymetallic projects in the Americas and is working towards building a strong, stable and well financed mineral exploration and small mines mining company.

Concurrently with this news release, the Company is filing its 3rd Quarter Report with the regulatory authorities through SEDAR (www.sedar.com) and has mailed it to shareholders who have requested copies and whose names appear on the Company’s Supplemental List.  A copy of the Quarterly Report is available on the SEDAR website, or will be mailed upon request.  Additional information about International Millennium Mining Corp. and its mineral property interests, including technical reports, is available on the internet at the SEDAR website, namely www.sedar.com.

International Millennium Mining Corp. (TSX-V: IMI) is a mineral exploration and development company engaged in acquiring known smaller mine deposits, such as its Nivloc, Nevada silver-gold mine project, in the Americas, with the goal of advancing the properties to the mining stage.  Emerging targets include silver, gold, copper, zinc and lead.   The Company’s common shares trade on the TSX Venture Exchange under the symbol: IMI and on the Frankfurt Exchange under the symbol: L9J.

ON BEHALF OF THE BOARD

    “John A. Versfelt”

John A. Versfelt
President and CEO

Further information about the Company can be found on SEDAR (www.sedar.com) or by contacting Ms. Sheri Barton: 403-217-5830 This email address is being protected from spambots. You need JavaScript enabled to view it. or Mr. John Versfelt, President & CEO of the Company at 604-984-9907.

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Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.  This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, potential mineral recovery processes and other business transactions timing.  Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties.  Actual results may differ materially from those currently anticipated in such statements.