|April 05, 2010|
Kirrin Resources Reports 2009 Results
|Calgary, Canada: Kirrin Resources Inc. reported today its financial results and operational highlights for 2009. Summary financial data is set out in tabular form below. |
Kirrin recorded a net loss for the year of $924,908 (2008: profit $190,500) of which $552,833 was the write-down of mineral interests (2008: $20,135) and a credit of $362,000 represented the gain on the disposal of the diamond division (2008: $904,915) following the receipt of escrowed proceeds. The balance sheet strengthened during 2009, the year ending with positive working capital of $303,164 (2008: deficit $57,808) and liabilities decreasing by $273,670 to $690,763. General and administrative costs reduced substantially to $537,646 (2008: $857,101).
(2) 2008 and 2007 have been revised to reflect the 1 for 10 share consolidation approved May 1, 2009.
Financing the year's exploration program proved challenging. With the spot market for uranium subdued for the whole year, Kirrin raised just short of $1 million, albeit at the end of the year when flow-through offerings were in demand. This capital was supplemented by a $100,000 grant from the Department of Natural Resources of the Province of Newfoundland & Labrador under its Minerals Incentive Program. Aggregate exploration expenditures were $0.4 million, largely on the Lost Pond rare earth elements (REE) project, subsequently renamed Bottom Brook, and the Boxey Point uranium project.
The prospecting and sampling program carried out in October-November, 2009 on the Bottom Brook REE property, located near Stephenville in western Newfoundland, produced results that exceeded expectations. There are now nine REE targets at Bottom Brook and a follow-up program of ground magnetics and geochemistry is planned, to be followed by trenching and/or drilling on the discrete magnetic targets.
The 2009 exploration program resulted in the identification of two new areas of rare earth mineralization:
Reg A. Olson, Ph.D., P. Geol. is the designated Qualified Person for Kirrin on the Bottom Brook and Boxey Point projects.
Annual General and Special Meeting
Kirrin also announced that its annual general and special meeting of shareholders will be held on Monday, May 3, 2010 in Calgary. Business will comprise the consideration of the audited financial statements for the year ended December 31, 2009 and the report of the auditors thereon; fixing the board of directors at five members and electing the board of directors; appointing KPMG LLP as auditors and authorizing the board of directors to fix the auditors' remuneration; and considering, approving and adopting Kirrin's stock option plan.
The Annual Report, Proxy and Information Circular are being mailed to shareholders on or about April 6, 2010. The complete Annual Report, including financial statements and Management's Discussion and Analysis, will be available on www.kirrinresources.com. These documents will also be available at www.sedar.com.
Additional information relating to Kirrin is available on Kirrin's web site at www.kirrinresources.com and on SEDAR at www.sedar.com.
Kirrin is engaged in rare earth element and uranium exploration in Newfoundland & Labrador, Quebec and Saskatchewan and in the expansion of its portfolio through acquisition, merger, strategic partnership or joint venture. Its strategy is well defined: enhancing shareholder value by combining technical expertise, corporate development skills and professional management. Kirrin's shares trade on the TSX Venture Exchange under the symbol KYM.
FOR FURTHER INFORMATION PLEASE CONTACT:
Derek J Moran, President, Kirrin Resources Inc.
27 82 440 3426
Robin Cook, Account Manager, CHF Investor Relations
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.
Forward-looking information: Except for statements of historical fact, all statements in this news release, without limitation, regarding new projects, acquisitions, future plans and objectives are forward-looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those expressed or implied by such forward-looking information. Risks include delays in obtaining or failure to obtain regulatory approval. Except as required by applicable securities legislation, the Company undertakes no obligation to publically update or revise forward-looking information, whether as a result of new information, future events or otherwise.
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