RE:Greencastle Reports Year End ResultsTORONTO, ONTARIO--(Marketwire - March 28, 2011) -Greencastle Resources Ltd. (TSX VENTURE:VGN) ("Greencastle" or the"Company") is pleased to report on fiscal 2010 financial performance.
Net income for the year ended December 31, 2010 was $ 626,856or
.01 per share. Total assets of the Company increased to $9,845,872from $8,082,478 at December 31, 2009 while liabilities decreased to$105,987 from $121,586 over the period.
At December 31, 2010, the Company had working capital of$7,998,359 (December 31, 2009 – $5,915,980). The Company had cash andcash equivalents of $5,097,551 at December 31, 2010(December 31, 2009 -$4,450,517). The increase was largely due to the sale of marketablesecurities at a profit for cash proceeds of $1,787,671, cash proceedsfrom the exercise of stock options of $96,000 and ongoing royaltyincome. Total royalty revenue for the year ended December 31, 2010, was$1,269,703 (year ended December 31, 2009 - $1,303,898).
Net assets increased 22% to $9,739,885 with current (liquid) assets being $7,998,359 (82%).
Commenting on the results, Anthony Roodenburg, CEO, noted:"Despite aggressive write downs and depletion totalling $1,519,303 infiscal 2010, Greencastle's balance sheet performed very well thanks inlarge part to the performance of our marketable securitiesportfolio. The challenge now is to unlock value in our gold explorationassets and we hope to announce some initiatives in this area in thesecond quarter. Richfield Ventures Corp.'s Blackwater project is shapingup to be a significant discovery and we are looking forward to gettingground work started on our Nechako property nearby."
During the year ended December 31, 2010, gold explorationactivities were limited except for the Company negotiating for theacquisition of the Nechako property in British Columbia. On October 9,2010, the Company entered into an option agreement to acquire a 100%interest in the Nechako property, covering approximately 13,000 hectares(28 claims), in the Nechako Plateau region of British Columbia. Theproperty is geologically on trend with the Blackwater property ofRichfield Ventures Corp. where that company is currently working todelineate its bulk tonnage gold project.
During fiscal 2010, the Company decided to discontinue workon the Boggy Lake project and has written-off $972,928 of expenditures.The Boggy Lake area appears prospective for natural gas and, should gasprices improve considerably, the Company may consider further work toevaluate the gas potential of the landholdings.
Further to the Company's press release dated November 1st,2010, announcing the engagement of Douglas McKay & Associates toprovide investor relations services to the Company, the Company wishesto clarify that the option grant of 150,000 options at
.20 to thatfirm was for a period of two years, i.e. to November 1st, 2012.