New Pacific Metals Corp. (TSX VENTURE:NUX) announces its unaudited consolidated financial results for the first quarter ended September 30, 2010.
FIRST QUARTER HIGHLIGHTS
The Company:earn
- successfully acquired 79.2% of issued and outstanding shares of Tagish Lake Gold Corp. ("TLG"), a Canadian publicly traded company involved in the exploration and development of gold-silver mineral deposits in Yukon Territory, Canada. TLG's main assets consist of three identified gold and gold-silver mineral deposits: Skukum Creek, Goddell Gully, and Mount Skukum; and
- entered into a share transfer agreement with a Chinese third party to sell Yunnan Jin Chang Jiang Mining Co. Ltd. ("JCJM"), which holds Huaiji Project, for a total of $30.5 million (CNY¥200 million). The first deposit of $3.08 million (CNY¥20 million) has been received by the Company as of September 30, 2010.
Due to increased administration activities to support the acquisition and disposition transactions, loss from continuing operations increased by $97,091 to $470,433, compared to the three months ended September 30, 2009 ("Q1 2010") of $373,342.
Operation results of JCJM was recorded as loss from discontinued operations, which increased by $75,291 to $133,535 (Q1 2010 - $58,244), mainly due to loss on disposal of equipment.
Total loss for the period was $603,968 or $0.018 per shares, an increase of 172,382 compared to $431,586 or $0.014 per shares in Q1 2010.
Gain on disposal of mineral property interest was $14,443 (Q1 2010 -$nil), resulted from disposal of two exploration permits respectively of the Kang Dian Project and the Sichuan Project.
During the quarter, the Company entered into a $15 million credit facility to fund the acquisition of TLG. As of September 30, 2010, the Company had a working capital deficit of $250,985 (June 30, 2010 – positive $8,964,681). Cash and cash equivalents plus short term investments amounted to $11,124,753 (June 30, 2010 - $9,334,948) and are unencumbered.
OUTLOOK
The Company is planning to increase its interest in TLG to 100% by acquiring remaining shares currently not held by the Company, and to develop the Tagish Lake Gold Project to production while exploring the resource potential in this area.
Source: New Pacific Metals Corp.