International Millennium Mining Corp. Reports 4th Quarter and 2012 Annual Results

New Westminster, B.C. - International Millennium Mining Corp. (the “Company” or “IMMC”) (TSX-V:IMI) reports its financial statements and MD&A (the “Quarter and Annual Report”) for the 4th Quarter and Year Ended December 31, 2012 (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 2012 Audited Consolidated Financial Statements for the year ended December 31, 2012.

Summary for the Year Ended December 31

 

2012

2011

2010

Expenditures

$

369,453

$

407,080

$

398,663

Stock Based Compensation

$

176,953

$

20,000

$

-

Gain on sale of mineral properties

$

170,825

$

-

$

-

Premium on issue of flow through shares

$

-

$

(10,000)

$

(18,750)

Write Down or (Gain) on Resource Properties

$

165,856

$

(13,495)

$

1,513,543

Net Loss

$

(652,115)

$

(439,749)

$

(1,893,456)

Net Loss Per Share

$

(0.00)

$

(0.01)

$

(0.03)

 

As at

December 31, 2012

December 31,2011

Deferred Mineral Property Expenditures

$

5,577,125

$

5,044,945

Total Assets

$

5,895,236

$

5,405,488

Total Liabilities

$

684,312

$

801,444

Share Capital

$

16,299,945

$

15,082,923

Common Shares Outstanding

 

104,245,096

 

89,636,497

Fully Diluted Shares Outstanding

 

136,628,761

 

103,426,723

 

Summary Discussion

At December 31, 2012, the Company had a total of 104,245,096 common shares outstanding.

During the year ended December 31, 2012 the Company recorded a net loss of $652,115 as compared to a net loss of $439,749 during fiscal 2011.  Overall expenditures decreased by $37,627, or 9%, from $407,080 in fiscal 2011 to $369,453 in fiscal 2012.  The material variances during the periods are as follows:

i) The Company realized a gain of $170,825 on the sale of the remaining 20% interest in the Hilda/GuadalupeIMMC received four million shares of First Mexican Gold Corp. (“First Mex”) and a 2% NSR payable to IMMC with 1% re-purchasable by First Mex for US$1 million dollars. The Company had previously reported the gain of $640,000 in the first quarter of fiscal 2012 but it was revised to reflect the present value of the 4,000,000 shares received. According to the agreement IMMC can only sell 50,000 shares per month;

ii) The Company granted 1,715,000 stock options and extended the expiry date of 1,930,000 stock options, and issued 435,000 broker warrants exercisable at $0.08/$0.As a result the Company recorded $176,593 in stock based compensation during fiscal 2012 as compared to $20,000 during fiscal 2011;

iii) The Company recorded a loss on foreign exchange of $5,617 during fiscal 2012, as compared to a foreign exchange gain of $15,278 in fiscal 2011, on the translation of our international subsidiary;

iv) The Company incurred an accretion and finance cost expense of $77,629 as a result of a $400,000 loan, as compared to a finance expense of $36,164 in fiscal 2011;

v) The Company wrote down resource properties by $165,856 in fiscal 2012;

vi) The Company accrued an asset retirement obligation for the Simon and Nivloc properties for $50,000; and

vii) The Company accrued an income tax expense of $30,000 on the receipt of the 4,000,000 shares in First Mex.

During fiscal 2012, the Company issued 14,608,599 common shares. These common shares were issued pursuant to the exercise of 50,000 stock options for proceeds of $5,000; the exercise of 3,569,265 warrants for proceeds of $359,927; the exercise of 355,584 broker warrants for proceeds of $28,447; 350,000 shares issued for property payments; and 10,283,750 shares issued pursuant to a private placement for net proceeds of $786,580.

The Company’s working capital deficit decreased to $513,422 at December 31, 2012, as compared to a deficit of $594,901 at December 31, 2011. 

Selected Financial Data by Quarter

 

International Financial Reporting Standards

( $ )

Q4-12

Q3-12

Q2-12

Q1-12

Q4-11

Q3-11

Q2-11

Q1-11

Revenue

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

 

 

 

 

 

 

 

 

 

Expenses

72,049

83,181

108,060

106,163

201,696

(12,957)

83,816

154,165

Net income (loss) for the period

(676,628)

(109,014)

(384,365)

513,892

(249,731)

12,957

(83,816)

(154,165)

Stock based compensation

(63,407)

-

240,000

-

2,000

-

-

18,000

Basic  income (loss) per share

0.00

0.00

(0.01)

0.01

0.00

0.00

0.00

0.00

 

 

 

 

 

 

 

 

 

Cash & cash equivalents

102,938

111,870

45,106

191,575

165,476

232,753

173,376

455,331

Current assets

120,890

120,706

53,933

207,887

206,543

369,100

199,252

485,677

Working capital(deficiency)

(513,422)

(902,098)

(881,975)

(692,583)

(594,901)

(10,791)

(186,094)

101,865


Exploration Programs

Nivloc Mine, Nevada Property

Upon finalization of the Nivloc Property Option & Joint Venture Agreement with Silver Reserve Corp.’s (“SRC”), the Company initiated a drilling program on the Nivloc Property. Thirty-seven (37) drill holes, totalling approximately 10,500 metres have been completed to April 5, 2012.

The Company is beginning to outline a silver and gold un-mined mineralized zone measuring 1,200 feet along strike and 600 feet down dip, measured vertically. Drill hole results from drill holes 1 through 37 have been announced previously by the Company. These results have been filed on SEDAR, and can be reviewed on the Company’s web site at www.immc.ca.

On August 16, 2012 the Company announced the results of its initial inferred mineral resource estimate at the Nivloc Silver and Gold Project. The report concludes that the area tested by the 2011 drilling program on the Nivloc Property contains an Inferred Mineral Resource, at 40 g/t Ag cut-off, of 1,640,000 tonnes at a grade of 106.47 g/t Ag and 0.78 g/t Au.  The 43-101 Initial Inferred Mineral Resource Estimate can be viewed on the Company’s website at www.immc.ca.

Subsequent to the year end, and pursuant to a Sale and Purchase Agreement, International Millennium Mining Inc. (“IMMI”) a subsidiary of IMMC, has agreed to pay SRC US$425,000 for SRC’s Nivloc Property interests and SRC will transfer 100% of its interest, right and title in those interests to IMMI. This transaction is scheduled to close May 31, 2013 or such other date that the parties agree upon.

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 Audited Consolidated Financial Statements 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.  Additional information about International Millennium Mining Corp. and its mineral property interests, including technical reports, is available on the internet at the SEDAR website www.sedar.com, or on the Company’s website www.immc.ca.

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 527-8135.

* * * * * * *

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.