Aurelian Resources Was Stolen By Kinross and Management But Will Not Be Forgotten
The company whose shareholders were better than its management
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- WebBroker Select Company News Alert
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Aurelian Files 2007 Financials, MD&A AND AIF; Restates 2006 Results
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TORONTO, ONTARIO--(Marketwire - March 27, 2008) - Aurelian Resources Inc. (TSX:ARU) has filed its Financial Statements, Management's Discussion & Analysis and Annual Information Form for the year ended December 31, 2007. This information will be available at www.sedar.com. The company also announced that it has restated its audited financial statements for the year ended December 31, 2006 relating to stock-based compensation and Ecuador administration expenses.
"In 2007, we focused on defining and delineating our Fruta del Norte deposit and began to set the stage for development and eventual production," says Patrick F.N. Anderson, President and CEO. "A scoping study, updated FDN resource and stability agreement with the government of Ecuador are all expected over the coming months, moving us toward our goal of becoming a mid-tier producer by 2012."
2007 Highlights:
- Working capital of $57.0 million at December 31, 2007 (2006: $85.7 million)
- $23.8 million in 2007 (2006: $9.7 million) to fund significantly increased mineral property and deferred exploration and development expenditures
- Total metres drilled in 2007 on all targets were 55,000 (2006: 23,600 metres)
- On October 4, 2007 Aurelian released its NI 43-101 compliant initial inferred resource on the Fruta del Norte (FDN) deposit of 58.9 million tonnes grading 7.23 g/t gold and 11.8 g/t silver for 13.7 million ounces of contained gold and 22.4 million ounces of contained silver
- The company began preliminary mine planning and engineering studies toward development of FDN in August of 2007.
The company has restated its results for the year ended December 31, 2006 as a result of correcting its treatment of stock-based compensation and Ecuador administrative costs.
For the year ended December 31, 2007, the company capitalised $13.6 million in stock-based compensation for certain geotechnical personnel in accordance with the Company's accounting policy. Certain other costs, including salaries for these personnel, had previously been capitalised in mineral properties and deferred exploration expense. Stock-based compensation cost for these personnel was incorrectly expensed prior to completing financial statements for the year ended December 31, 2007. This change resulted in $0.5 million of stock-based compensation expense for the year ended December 31, 2006 being restated as well.
To reflect the increasing development profile of the Company, $1.6 million in Ecuador administration costs were expensed as general and administrative expense for the year ended December 31, 2007. These costs had previously been capitalised in mineral property exploration and deferred exploration expense. This has resulted in a reclassification of $0.6 million in similar Ecuador administration costs as general and administrative expense for the year ended December 31, 2006. These costs had previously been capitalised.
The two changes above resulted in a net loss for 2006 of $6.0 million ($0.05 loss per share), compared with the previously reported net loss of $5.9 million ($0.05 loss per share). The company will restate 2007 quarterly results prospectively as the 2008 quarterly results are reported.
About Aurelian
Aurelian Resources Inc. is a publicly-listed (TSX:ARU) resource company engaged in exploring, discovering and developing mineral wealth in Ecuador. The Fruta del Norte (FDN) discovery lies at the heart of the Condor Project properties, located in south-eastern Ecuador and consisting of 38 mining concessions totalling approximately 95,000 hectares. The initial inferred resource for FDN was released in October 2007 and included 58.9 million tonnes grading 7.23 g/t gold and 11.8 g/t silver for 13.7 million ounces of contained gold and 22.4 million ounces of contained silver. Aurelian is committed to working with the government and people of Ecuador to achieve a modern, sustainable mining industry, which will play an important role in the future growth of the country. Visit www.aurelian.ca for more information.
Forward Looking Statement
Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralisation and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital.
FOR FURTHER INFORMATION PLEASE CONTACT:
Aurelian Resources Inc.
Keith McKay
Chief Financial Officer
(416) 868-9100
Email: kmckay@aurelian.ca
or
Aurelian Resources Inc.
Marla Gale
Investor Relations
(416) 868-9100
Email: mgale@aurelian.ca
Website: www.aurelian.ca
© 2008 The Globe and Mail
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