VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 12, 2013) - Oracle Mining Corp. ("Oracle Mining" or the "Corporation") (TSX:OMN)(OTCQX:OMCCF)(FRANKFURT:OMC) announces its financial results for the year and quarter ended December 31, 2012. This news release should be read in conjunction with the audited annual financial statements and notes thereto for the year ended December 31, 2012, and management's discussion & analysis ("MD&A") for the year ended December 31, 2012, both available on SEDAR at www.sedar.com.
Advances were made on the three primary areas of activity at the Corporation's principal property, the Oracle Ridge copper project ("Oracle Ridge"), during the quarter ended December 31, 2012, including the continuation of the validation drilling program; geological, mining and engineering studies ("Project Development Studies"); and permitting and regulatory programs. A detailed discussion of the progress made on these activities during the fourth quarter is available in the MD&A.
For the year ended December 31, 2012, the Oracle Mining had a net loss of $21.7 million compared to net loss of $16.0 million in the 2011 comparative period. Net loss in the current period is primarily due to exploration and evaluation expenditures of $14.0 million at the Oracle Ridge copper project, $6.8 million in general and administrative costs, and $0.4 million in other costs. The increase in general and administrative expenses of $1.1 million for the current year compared to the equivalent 2011 period consisted of increased salaries and benefits of $0.4 million, increased professional and consulting fees of $0.3 million, increased investor relations costs of $0.3 million, and increased travel expenses of $0.2 million, slightly offset by decreased share-based payment expenses of $0.1 million.
The increase in exploration and evaluation expenditures of $3.9 million for the year compared to the equivalent 2011 period consisted of increased design and technical studies costs of $2.0 million, increased site and safety services costs of $0.3 million, increased site and advisory costs of $1.1 million, and increased underground exploration and development of $1.4 million, partially offset by decreased permitting costs of $0.4 million and decreased drilling costs of $0.5 million. The increased costs compared to the prior year are due to increased activities as Oracle Mining works toward completing a technical report and advancing Project Development Studies.
As at December 31, 2012, total assets were $26.8 million compared to $30.9 million as at December 31, 2011. The difference resulted from increased expenditures relating to the ongoing development of the Oracle Ridge copper project, including the exploration program, technical studies and permitting activities.
As at December 31, 2012, total liabilities were $3.5 million compared to $4.7 million as at December 31, 2011. Liabilities at December 31, 2012, mainly consist of trade and other payables. The prior year's balance included $2.9 million in promissory notes payable that were secured by an interest in the Oracle Ridge property. In May 2012, the Corporation paid $0.5 million of principal owing under the promissory notes. In November 2012, Oracle Mining paid the full outstanding balance on the promissory notes payable plus accrued interest of $2.7 million.
For the three months ended December 31, 2012, the Corporation had a net loss of $6.6 million compared to net loss of $5.4 million in the three months ended September 30, 2012. The increase in net loss compared to the prior quarter is primarily due to an increase of $0.3 million in exploration and evaluation expenditures, $0.6 million increase in general and administrative costs, $0.2 million in financing charges during the fourth quarter.
As at December 31, 2012, Oracle Mining had cash and cash equivalents of $11.1 million, working capital of $8.9 million, and long-term debt of $0.5 million.
All financial information for the year and quarter ended December 31, 2012 is prepared in accordance with International Financial Reporting Standards ("IFRS") and reported in United States dollars unless otherwise noted, including this news release. Please refer to Note 2 of the audited annual financial statements for the year ended December 31, 2012 and Notes 2 and 21 of the audited annual financial statements for the year ended December 31, 2011 more information.
About Oracle Mining Corp.
Oracle Mining Corp. (TSX:OMN)(OTCQX:OMCCF)(FRANKFURT:OMC) is a Vancouver, Canada-based corporation that is the sole owner and operator of Oracle Ridge Mining, LLC and the Oracle Ridge Copper Mine located 24 km northeast of Tucson, Arizona. Oracle Mining is managed by an experienced team of mining professionals with extensive operating and financial experience.
Cautionary Note Regarding Forward-Looking Information
Information and statements contained in this news release that are not historical facts are "forward-looking information" within the meaning of Canadian securities legislation that involves risks and uncertainties. Forward-looking information included herein is made as of the date of this news release and Oracle Mining does not intend, and does not assume any obligation, to update forward-looking information unless required by applicable securities laws. Forward-looking information relates to future events or future performance and reflects management of the Corporation's expectations or beliefs regarding future events. In certain cases, forward-looking information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "intends", "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. Examples of forward-looking information in this document include, but are not limited to, statements with respect to our plans and expectations for the Oracle Ridge project, including our plans to work towards completing a new technical report and to advance Project Development Studies.
This forward-looking information is based, in part, on assumptions and factors that may change or prove to be incorrect, thus causing actual results, performance or achievements to be materially different from those expressed or implied by forward-looking information. Such factors and assumptions include, but are not limited to: our assumptions regarding copper, base metal and precious metal prices; the success of drill programs; reliability of drilling, sampling and assay data; representativeness of mineralization, accuracy of metallurgical testwork and preliminary process design work; and our ability to comply with current and future environmental, safety and other regulatory requirements and to obtain and maintain timely receipt of regulatory approvals; our ability to successfully raise capital. By its very nature, forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by forward-looking information. Such factors include, but are not limited to: risks related to the uncertainty of our exploration and development efforts; risk that we are unable to enforce our legal rights under existing agreements, permits or licences or are subject to litigation or arbitration that has an adverse outcome; risk there are changes in project parameters as plans continue to be refined; risks related to the uncertainty of timing of events; fluctuation in copper, base metal and precious metal prices; risk that we cannot obtain or maintain necessary permits or approvals from governmental authorities; we are affected by environmental, safety and regulatory risks, including increased regulatory burdens or delays, accidents, labour disputes and other risks inherent in the mining industry; delays in obtaining governmental approvals or financing or in the completion of Project Development Studies, as well as those factors discussed in the Corporation's MD&A filed on March 12, 2013 and annual information form dated April 13, 2012, for the year ended December 31, 2011, filed and available for review on SEDAR at www.sedar.com. Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated by such forward-looking information. Accordingly, readers should not place undue reliance on forward-looking information.