International Millennium Mining Corp. Reports 4th Quarter and Annual Results

North Vancouver, B.C. - International Millennium Mining Corp. (the “Company”) (TSX-V:IMI) reports its financial statements and MD&A (the “Quarter and Annual Report”) for the 4th Quarter and year ended December 31, 2010 (BC Form 51-102F1).  Pursuant to the requirements of National Instrument 51-102, this news release provides a summary of the information contained in the Quarter and Annual Report. 

Summary of 4th Qtr and Year Ended December 31


Cdn ($)

4th Quarter Fiscal 2010

4th Quarter Fiscal 2009

Year to Date
Fiscal 2010

Year to Date
Fiscal 2009

General and Administration Expenditures

$     125,445

$          99,380

$      398,663

$         326,073

Stock Based Compensation

$                 -

$        190,000

$.................-

$        190,000

Interest Income

$                 -

$                    -

$                 -

$             1,151

Future Income Tax Recovery

$               - 

$                    -

$     (26,625)

$        (21,250)

Write Down Resource Properties

$  1,136,088

$          35,674

$  1,513,543

$         409,653

Net Loss

$  (1,173,523)

$      (682,478)

$(1,797,581)

$      (903,325)

Net Loss per share

$           (0.02)

$            (0.03)

$         (0.03)

$            (0.03)

 

 

 

 

 

 

 

 

 

 

As at December 31

2010

2009

 

 

Deferred Mineral Property Expenditures

$    2,333,517

$    2,879,562

 

 

Total Assets

$    3,248,611

$     3,101,011

 

 

Total Liabilities

$       460,320

$        283,473

 

 

Share Capital

 12,265,021

10,506,987

 

 

Common Shares Outstanding

69,874,367

35,336,943

 

 

Fully Diluted Shares Outstanding

    101,762,530

     41,171,943

 

 

Summary Discussion

At December 31, 2010, the Company had a total of 69,874,367 common shares outstanding.

During the fiscal year ended December 31, 2010 the Company recorded a net loss of $(1,797,581) as compared to $(903,325) during the fiscal 2009.  The primary reasons for the difference are as follows:

  1. The Company wrote down the resource properties totalling $1,513,543 during fiscal 2010 as compared to the write down in fiscal 2009 of $409,653;
  2. Stock based compensation expense decreased from $ 190,000 in fiscal 2009 to nil in fiscal 2010;
  3. Accounting and legal expenditures increased by $21,118 due to higher legal fees incurred on investigation of properties and settlement of property litigation;
  4. Interest income has decreased to $nil for the fiscal year ended December 31, 2010 as compared to $1,151 in fiscal 2009;
  5. Foreign currency losses increased to $39,309 in fiscal 2010 as compared to a loss of $3,069 in fiscal 2009, as a result of foreign exchange differences. In 2010 foreign exchange differences between USD and CAD whereas in 2009 were more pronounced as there was little difference between U.S. and Canadian currencies in fiscal 2009;
  6. A future tax recovery of $26,625, recorded on the renouncement of the flow through financing that closed in January 2010, reduced the net loss by $26,625.

 

During fiscal 2010, the Company finalized three private placements by issuing 34,017,237 units for total proceeds of $1,951,784. These proceeds were used to fund the drill programs on the Simon and Nivloc properties.

The Company’s working capital has increased to a surplus of $297,294 at December 31, 2010. Subsequent to the year end, 4,818,916 warrants and 2,357,059 broker warrants were exercised for gross proceeds of $663,691 that will fund the drill program on the Nivloc Property and provide additional working capital.

With the exception of a $2,000 USD monthly payment that will be required for the Simon Property the Company also transferred all property payments and contracted exploration expenditures to joint venture partners.  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 ventures; the termination of the Harrison Lake Property joint venture; and, the termination of the Jason Property Agreement. The Company has 27,521,369 warrants outstanding that, if exercised, would result in additional $2,274,579.

Accounting and legal fees increased during the year ended December 31, 2010, to $79,846 from $58,728, in the fiscal 2009 due to additional legal fees on the settlement of the Simon estate. Administration costs decreased during fiscal 2009 by $15,557 primarily as a result of fees incurred to prepare a business plan during fiscal 2009 which costs were not incurred during fiscal 2010. Bank charges and interest decreased by $4,100 during fiscal 2010 to $1,627 as a result of lower accrual of Part XII taxes.  Printing and shareholders information decreased from $12,770 in fiscal 2009 to $11,318 in fiscal 2010 due to a reduction in costs incurred in preparation of the 2010 annual report. Salary costs increased by $3,997 during fiscal 2010 to $32,278 as compared to $28,881 in fiscal 2009 due to salary increases. Transfer agent and filing fees increased to $40,226 in fiscal 2010 as compared to $35,348 in fiscal 2009, an increase of $4,878 in additional regulatory filing fees incurred because of the private placements completed in fiscal 2010.

The Company recorded a net loss of ($1,797,581) for the year ended December 31, 2010 as compared to a net loss of ($903,325) in the year ended December 31, 2009. The primary difference results from larger write downs of resource properties recorded in fiscal 2010, as compared to fiscal 2009. Additionally the Company recorded a $88,000 change in fair value on investments as a result of the increase of the 200,000 shares of First Mexican Gold. During fiscal 2009, the Company recorded a $26,625 income tax recovery as a result of  renouncing $31,500 of exploration expenditures for income tax benefits on a flow through financing, compared to a $21,250 renouncement in fiscal 2009.

Exploration Programs

Simon
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.

Nivloc
Upon completion of the Nivloc Property acquisition from SRC, the Company prepared a drilling plan which was started in the beginning of fiscal year 2011. Contingent on receiving funding for the drilling program and favourable results the Company plans to carry out a minimum 3,000 metres of drilling in 2011.Contingent on  and the appropriate finances, ,
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.

Comparison of the Quarterly results

Overall there was a 40% increase in general and administration expenses to $140,398 in the quarter ended December 31, 2010 from $99,380 in the comparable period in fiscal 2009. Accounting and legal fees have decreased $13,457 in the fourth quarter of fiscal 2010 to $14,583 as compared to $28,040 in fiscal 2009 and increased by $2,721 in the fourth quarter of fiscal 2010 from $ 10,736 in the third quarter of fiscal 2009 due additional accrual for audit fees in the third quarter. Bank charges and interest decreased by $4,553 to $466 in fourth quarter of fiscal 2010 as compared to $5,019 incurred in the fourth quarter of fiscal 2009 due to a smaller accrual for Part XII taxes. Bank charges and fees increased $40 to $466 in the fourth quarter of fiscal 2010 as compared to $466 incurred in the third quarter of fiscal 2010 for the same reason. The Company incurred a loss of $31,756 on foreign exchange in the fourth quarter of fiscal 2010 as compared to a loss of $2,649 realized in the fourth quarter of fiscal 2009 from the translation of USD to CAD on consolidation of the US subsidiary during the quarter but recorded an increased loss of $30,132 during the fourth quarter of fiscal 2010 as compared to $1,624 in the third quarter of fiscal 2010. Transfer agent and filing fees increased by $2,012 to $12,486 in the fourth quarter of fiscal 2009 as compared to $10,474 in the fourth quarter of fiscal 2009 and increased by $5,134 when compared to the third quarter of fiscal 2010, due to additional regulatory filing fees incurred as a result of private placement closed in November 2010.

The Company recorded nil stock based compensation during the fourth quarter of fiscal 2010. During the fourth quarter of fiscal 2009, the Company recorded a stock based compensation expense of $190,000 as a result of the issue of 2,810,000 stock options.

The Company recorded a net loss of $(1,173,523) during the quarter ended December 31, 2010 as compared to a net loss of$(682,478) during the comparable period in fiscal 2009 and a loss of $(426,158) incurred during the third quarter of fiscal 2010. The primary difference for the losses are the resource property write downs.

Concurrently with this news release, the Company is filing its 2010 4th Quarter and Annual 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 Quarter and Annual 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.

As the Company has now filed its outstanding financial statements and MD&A, the British Columbia Securities Commission has revoked the management cease trade order imposed May 5, 2011. 

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.

International Millennium Mining Corp. is a mineral exploration and development company engaged in acquiring known small mine deposits and in the exploration of polymetallic mineral properties in Canada and the Americas.  To date, the Company has acquired and is exploring mineral properties in Nevada, USA; Ontario, Canada; and, Sonora State, Mexico. Emerging mineral targets include silver, gold, zinc, lead, and copper. 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.