Alexander Nubia International Inc. Reports First-Quarter Financial Results for 2013
Alexander Nubia International Inc. Reports First-Quarter Financial Results for 2013
Update on key project in Egypt, the Hamama VMS project
Toronto, Ontario CANADA, May 30, 2013 /FSC/ - Alexander Nubia International Inc. (AAN - TSX Venture), ("AAN" or the "Company"), today reported its financial results for the three- and nine-month periods ended March 31, 2013. Unless otherwise noted, all amounts are in Canadian currency.
Key Operational and Financial Highlights for the Quarter
Exploration
Hamama volcanogenic massive sulphide ("VMS") deposit in the Abu Marawat Concession:
* Deepest drill hole (AHA-26), extends mineralization to 150 metres vertical depth.
Financial
* The Company completed a non-brokered private placement of 5,200,000 units for gross proceeds of $260,000. Each unit being comprised of one common share in the capital of the Company and one common share purchase warrant. Each Warrant entitles the holder thereof to acquire one Common Share at a price of $0.10 until April 22, 2015. All common shares issued in connection with the private-placement transaction are subject to a four month statutory hold period, in accordance with applicable securities legislation.
* The Company reached terms with certain creditors of the Company to exchange shares for debt. Specifically, the Company has agreed, subject to approval of the TSX Venture Exchange, to issue 6,852,371 common shares (valued at $0.05 per share) to settle approximately $342,618 of debt owing to arm's length and non-arm's length parties. All common shares issued in connection with the shares for debt transaction are subject to a four month statutory hold period, in accordance with applicable securities legislation.
* The Company secures an extension to the term of its exploration licenses from the Government of Egypt.
Outlook
Chief Executive Officer, Mr. Alexander Massoud stated, "A very encouraging result at the Hamama VMS deposit where we intersected strong VMS mineralization at a depth of 150 metres. The other major VMS deposits in the Arabian-Nubian Shield - Nevsun's (T:NSU) Bisha VMS Deposit, La Mancha's Hassai VMS deposit, and Barrick Gold's (T.ABX) Jabal Sayid VMS deposit are known to extend to depths of from 600 to 800 metres." Mr. Massoud further commented, "Taking into consideration these deposits and that the Main VMS Horizon at Hamama, extending 3,000 meters along strike, is one of the largest in the Arabian-Nubian Shield, this supports our strong belief that the Abu Marawat Concession has the potential to host a major VMS deposit. Our present efforts are on securing major financing, which includes evaluating alternative investment strategies to meet our corporate objectives."
The business objectives of the Company for the next 12 months are as follows:
Hamama VMS Deposit
* Metallurgical test work;
* Mapping and, where appropriate, deep trenching to identify and explore the property extensions;
* A geophysical program to identify potential massive sulphide bodies at depth.
Abu Marawat Gold-Copper Deposit
* Metallurgical test work;
* Exploration drilling to test two new vein zones identified by deep trenching laterally from the main zone.
General Business Objectives
* To continue exploration for precious and base metals within the other targets;
* To raise funds required to advance exploration programs.
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Selected Financial Metrics
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Three months Three months
ended March ended March
31, 2013 31, 2012
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Evaluation and exploration $ 232,437 $ 593,159
expenditures
Loss from operations 428,636 775,379
Total comprehensive loss for 428,636 775,379
the period
Basic and diluted loss per share $ - $ 0.01
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As at As at
March December
31, 2013 31,2012
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Total cash on hand (cash and $ 42,162 $ 237,674
cash equivalents including
restriced cash)
Current liabilities 1,355,643 1,164,739
Working capital (1,279,782) (896,093)
Total assets 509,203 719,579
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Review of financial performance for the quarter
The Company incurred a net loss of $428,636 for the three months ended March 31, 2013, representing a decrease of $346,743 when compared with $775,379 for the three months ended March 31, 2012. The decrease in net loss during the three months ended March 31, 2013 was primarily the result of the decrease in:
* Evaluation and exploration expenditures by $360,722; and
* Foreign exchange loss by $16,329.
This increase was partially offset by the decrease in:
* Share-based payments by 18,677; and
* Finance expense by $15,129.
The Company incurred the following evaluation and exploration expenditures at the Abu Marawat Concession during the three months ended March 31, 2013 and March 31, 2012, respectively.
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For the three months ended
March 31, 2013 March 31, 2012 Increase (Decrease)
-------------------------------------------------------------------------Concession access $ - $ 2,983 $ (2,983)
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Exploration expenditures:
Assaying $ 8,882 $ 168,726 $ (159,844)
Field work 99,495 144,493 (44,998)
Geologic consulting - 76,163 (76,163)
Other costs 14,565 131,747 (117,182)
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122,942 521,129 (389,187)
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Concession administration * 109,495 69,047 40,448
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Total $ $ 232,437 $ 593,159 (360,722)
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*Concession administration represents the costs of managing the regulatory and governmental aspects of mineral exploration in Egypt. Costs are comprised of salaries, rent and office related expenditures.
The increase in exploration expenditures during the three months ended March 31, 2013 was primarily the results of the decrease in exploration activities on Abu Marawat concession.
Foreign exchange loss decreased by $16,329, to $3,293 for the three months ended March 31, 2013, from $19,622 for the three months ended March 31, 2012, due to fluctuations in the foreign currency exchange rates between the Canadian dollar, US dollar and Egyptian pound.
Share-based payments for the three months ended March 31, 2013 was $18,677 versus $nil for the three months ended March 31, 2012. This increase in share-based payments for the three months ended March 31, 2013 resulted from the increase in number of options vesting during the period and a corresponding recognition of the related expense.
Finance expense was $15,129 for the three months ended March 31, 2013 compared to $nil for the three months ended March 31, 2012. The finance expense was due to the convertible debentures of $215,000 issued on May 29, 2012. No such interest expense was recognized for the three months ended March 31, 2012.
The overall decrease in comprehensive loss for the three months ended March 31, 2013 compared to the three months ended March 31, 2012 is primarily the result of the decrease in level of exploration and business activities during the three months ended March 31, 2013.
At March 31, 2013, the Company had working deficiency of $1,279,782, including cash of $42,162 compared to working deficiency of $896,093 including cash of $159,657 and restricted cash of $78,017 as at December 31, 2012. The restricted cash as at December 31, 2012 is pledged in support of a guarantee provided to the Egyptian Mineral Resource Authority ("EMRA") and is released as exploration expenditures are incurred at the Abu Marawat Concession. During the three months ended March 31, 2013, the restricted cash of US$78,283 was released.
Based on the cash position on hand as at March 31, 2013 and expected cash flow requirements of the Company for the next twelve months, management believes that the Company will require additional funds to meet its present operational commitments and working capital needs.
Subsequent to March 31, 2013, the Company completed a non-brokered private placement of 5,200,000 units for gross proceeds of $260,000. In addition, the Company reached terms with certain creditors of the Company to exchange shares for debt. The Company has agreed to issue 6,852,371 common shares to settle approximately $342,618 of debt owing to arm's length and non-arm's length parties.
Qualified Person
The technical information contained in this news release was prepared or reviewed under the direct supervision of Dr. John Payne (P.Geo.), the Company's V.P of Exploration. Dr. Payne is a qualified person within the definition of NI 43-101.
About Alexander Nubia International Inc.
Alexander Nubia International Inc. is an established Canadian mineral exploration company that has been operating in Egypt since 2007. It is committed to identifying, focusing on and advancing gold and base-metal projects in the Eastern Desert of Egypt. The Company holds two exploration concessions in Egypt: Abu Marawat and Fatiri, which cover areas of 1,027 km2 and 1,745 km2, respectively. The Company is focused on exploration within the Abu Marawat Concession, which contains its two main properties, the Hamama volcanogenic massive sulphide ("VMS") deposit and the Abu Marawat mesothermal vein deposit, with an NI 43-101-compliant inferred gold-copper-rich resource.
The Hamama VMS deposit is located in the Arabian-Nubian Shield, which is known for the quality of its VMS deposits. Positive first-stage drill results at Hamama intersected high-grade semi-massive and massive sulphide mineralization, a broad zone of VMS gossan at-surface containing high-grade gold and silver (a "gold cap"), and an extensive mineralized footwall stringer and breccia zone.
The Company holds a highly prospective land package with an established history of mining dating back to the Pharaonic era, with three historical gold mines and four major prospects. The land package is enhanced by excellent and nearby infrastructure, which includes access to highway and railway, a high-capacity electricity grid, and nearby major cities: Qena, on the Nile River, and Port of Safaga, on the Red Sea.
For more information on Alexander Nubia please contact:
A. Alexander Massoud
President and Chief Executive Officer
Egypt: +2 (0) 22 287 6914
Email: amassoud@alexandernubia.com
General Information
Canada: +1 (604) 727-1813
Email: info@alexandernubia.com
Cautionary Note Regarding Forward-Looking Statements
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. The securities of Alexander Nubia International Inc. described herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions; by their very nature they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view this press release as a PDF, please click on the following link:
http://www.usetdas.com/pr/alexandernubia05302013.pdf
Source: Alexander Nubia International Inc. (TSX.V - AAN) http://www.alexandernubia.com
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