SOURCE: Ventura Gold Corp.
Ventura Announces Fiscal Year-End Results With Positive Working Capital of $7.6 Million
www.venturagold.com
SCOTTSDALE, AZ--(Marketwire - July 31, 2008) - Ventura Gold Corp. ("the Company") (TSX-V: VGO) ended its fiscal year at March 31, 2008 with $7.0 million in cash and cash equivalents and aggregate working capital of $7.6 million. The Company also held long-term investments of $1.0 million and securities held for trading with a market value of approximately $1.0 million. (All amounts are reported in US dollars, except as otherwise indicated.)
Ventura continued to make significant progress in implementing its business strategy, including the following highlights for the fiscal year ended March 31, 2008 and year to date:
-- Closed a non-brokered private placement unit financing in February
2008 raising $7.25 million in gross proceeds;
-- Confirmed the existence of a well-mineralized gold-silver zone within
the Angela vein at the Inmaculada gold property in Peru along a strike
length of greater than 500 meters ("m") and to a depth of as much as 300m
below surface. These significant drill assay results were obtained in a
second-phase core drilling program totalling 1,766m in eight drill holes as
announced subsequent to year-end in a June 12, 2008 news release.
Additional drilling is ongoing;
-- Invested $300,000 to acquire 1.2 million shares (approximately 9% of
the issued shares) of Caribbean Copper and Gold Corporation ("CCGC"), a
private unlisted exploration company with properties in Colombia and
Panama, increasing Ventura's strategic investment holdings to interests in
eight companies;
-- Saw successful initial public offerings (IPO's) for two of Ventura's
previously-private equity investments, which commenced trading on the TSX
Venture Exchange ("TSX-V") -- Colombian Mines Corporation and African Aura
Resources Ltd.;
-- Completed the earn-in and acquisition of a 60% interest in the
Cottonwood Peak gold exploration property in Northern Nevada;
-- Completed a drilling program on the Gold Gulch copper-gold project in
Arizona, adjacent to the Phelps Dodge Morenci copper mine;
-- Entered into an option agreement with Columbus Gold Corporation to
acquire a 51% interest in the Del Oro Property located in the
Getchell/Battle Mountain Trend south of Winnemucca, Nevada;
-- Announced that due to corporate priorities the Company is actively
seeking joint venture partners to advance its Del Oro, Gold Gulch and
Cottonwood Peak gold exploration properties in Nevada and Arizona.
Financial and Exploration Investment Overview
During the year ended March 31, 2008, the Company incurred a net loss of $1,306,955 ($0.01 per share) primarily due to increased administrative expenses arising from a significant acceleration of on-going exploration activities together with an unrealized loss on securities held for trading. During the same period last year, the Company incurred a net loss of $422,024 ($0.01 per share). The Company has filed its year-end financial statements and management discussion and analysis on SEDAR.
Net cash used in investing activities in 2008 was $4.3 million (2007 - $1.7 million). This was the result of several transactions including: a) the Company incurred $2.8 million in mineral property and deferred exploration costs mainly on the Gold Gulch and Inmaculada properties; and b) the Company acquired $0.6 million of securities held for trading and $0.8 million of long-term investments through strategic investment transactions.
Outlook
The Company has planned exploration programs through March 31, 2009 which total approximately $2.1 million, mainly focusing on the Inmaculada silver-gold project in Peru. The programs involve significant discretionary spending that can be deferred or cancelled depending on results, project priorities or cash availability.
At the completion of the current program of 15,000 meters of drilling at the Inmaculada gold-silver property in Peru (scheduled to be completed by early 2009), the Company will have met the requirements to earn-in and acquire a 51% join venture interest in the Inmaculada gold-silver project. At completion of the Company's earn-in, Hochschild has a one-time "back in" right for 90 days to acquire an additional 11% interest in the project (60% in total) in consideration for paying to the Company three times the Company's accumulated exploration expenditures (estimated to be approximately $4.0 million upon completion of the 15,000m drill program) on the project. If Hochschild exercises the back-in option, the project will go forward with the Company owning a 40% joint venture interest. If Hochschild does not elect to exercise the back-in option, the project will go forward with the Company owning a 51% interest and a right to acquire up to a 70% interest upon completion of certain feasibility study and financing criteria.
It is anticipated that the existing cash reserves will be sufficient to finance the Company's planned exploration and investment activities for the current fiscal year.
About Ventura
Ventura Gold Corp. is a United States-based precious metals exploration and development company with a business plan to a) acquire, evaluate and develop high-grade, low-cost gold-silver and base-metal deposits with a view to establishing strategic alliances and/or joint ventures with larger companies, and b) acquire strategic investments and/or alliances with pre-IPO exploration companies and listed junior companies where Ventura believes those companies and management have the resources and expertise to optimize the potential value of their asset bases. In addition to exploration projects in Peru, Arizona and Nevada, Ventura has approximately $2 million in strategic investments in emerging exploration companies with exposure to projects in Mexico, Colombia, Ecuador, Panama, Indonesia and Africa.
Neither Hochschild Mining plc nor any of its subsidiaries accept any responsibility for the adequacy or inadequacy of the disclosure made in this news release and any such responsibility is hereby disclaimed in all respects.
The TSX Venture Exchange neither approves nor disapproves of the information contained in this News Release.
VENTURA GOLD CORP.
CONSOLIDATED BALANCE SHEETS
(Expressed in United States Dollars)
AS AT MARCH 31
2008 2007
------------ ------------
ASSETS
Current
Cash and cash equivalents $ 7,022,533 $ 5,114,105
Receivables 9,007 4,179
Advances - 37,025
Securities held for trading 959,577 -
------------ ------------
7,991,117 5,155,309
Reclamation bond 25,585 21,946
Mineral properties and deferred exploration
costs 4,797,298 1,808,540
Long-term investments 1,029,819 609,608
------------ ------------
$ 13,843,819 $ 7,595,403
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities $ 116,077 $ 61,681
Accounts payable to related parties 71,277 87,868
Loans payable 245,318 232,585
------------ ------------
432,672 382,134
------------ ------------
Shareholders' equity
Capital stock 18,005,765 10,925,235
Contributed surplus 822,875 574,574
Deficit (5,417,493) (4,286,540)
------------ ------------
13,411,147 7,213,269
------------ ------------
$ 13,843,819 $ 7,595,403
============ ============
VENTURA GOLD CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT
(Expressed in United States Dollars)
YEAR ENDED MARCH 31
2008 2007
------------ ------------
EXPENSES
Administration and management services $ 205,434 $ 102,218
Bank charges and interest 5,735 1,465
Consulting 76,470 950
Exploration costs 26,377 45,138
Interest on loans payable 12,733 11,527
Investor relations and promotion 8,785 -
Office and miscellaneous 20,305 7,546
Professional fees 135,293 97,828
Rent and utilities 71,135 8,222
Salaries 340,573 7,233
Shareholder information 6,694 7,653
Stock-based compensation 250,600 9,613
Telephone 1,478 367
Transfer, exchange and filing fees 25,979 20,263
Travel and related 39,210 556
------------ ------------
(1,226,801) (320,579)
------------ ------------
OTHER ITEMS
Foreign exchange loss (6,293) (67,666)
Interest income 162,801 86,091
Gain on extinguishment of debt - 24,425
Unrealized loss on securities held for
trading (319,651) -
Unrealized gain on warrants 82,989 -
Write-off mineral property and deferred
exploration costs - (144,295)
------------ ------------
(80,154) (101,445)
------------ ------------
Loss for the year (1,306,955) (422,024)
Deficit, beginning of year (4,286,540) (3,864,516)
Fair value adjustment for financial instruments 176,002 -
------------ ------------
Deficit, end of year $ (5,417,493) $ (4,286,540)
============ ============
Basic and diluted loss per common share $ (0.01) $ (0.01)
============ ============
Weighted average number of common shares
outstanding 120,675,056 99,499,316
============ ============
VENTURA GOLD CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in United States Dollars)
YEAR ENDED MARCH 31
2008 2007
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES
Loss for the year $ (1,306,955) $ (422,024)
Items not affecting cash:
Interest accrued on loans payable 12,733 11,527
Stock-based compensation 250,600 9,613
Gain on extinguishment of debt - (24,425)
Unrealized gain on warrants (82,989) -
Unrealized loss on securities held for
trading 319,651 -
Write-off of mineral property and
deferred exploration costs - 144,295
Changes in non-cash working capital items:
Increase in receivables (4,828) (2,885)
(Increase) decrease in advances 37,025 (37,025)
Increase in accounts payable and accrued
liabilities 51,837 14,284
Increase (decrease) in accounts payable
to related parties 15,728 (5,168)
------------ ------------
Cash used in operating activities (707,198) (311,808)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of capital stock 7,252,199 6,565,680
Share issue costs (404,454) (30,201)
------------ ------------
Cash provided by financing activities 6,847,745 6,535,479
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES
Securities held for trading (630,662) -
Equipment - -
Long-term investments (809,786) (609,607)
Return of exploration advances - 140,322
Mineral property reclamation bond (3,639) (21,946)
Mineral properties and deferred exploration
costs (2,788,032) (1,216,168)
------------ ------------
Cash used in investing activities (4,232,119) (1,707,399)
------------ ------------
Increase in cash and cash equivalents during
the year 1,908,428 4,516,272
Cash and cash equivalents, beginning of year 5,114,105 597,833
------------ ------------
Cash and cash equivalents, end of year $ 7,022,533 $ 5,114,105
============ ============
Cash and equivalents is comprised of:
Cash $ 7,022,533 $ 5,110,747
Short-term commercial paper - 3,358
------------ ------------
7,022,533 5,114,105
============ ============
Cash paid during the year for:
Interest expense $ - $ -
Income taxes - -
============ ============
Wendy Yang
Vice President of Investor Relations
(303) 357-4863
Eric Edwards
President and CEO
(303) 357-4862