2013-08-24 01:07:38 -
Update on key project in Egypt, the Hamama VMS project
Toronto, Ontario CANADA, August 23, 2013 /FSC/ - Alexander Nubia International Inc. (AAN - TSX Venture), ("AAN" or the "Company today reported its financial results for the three and six month periods ended June 30, 2013. Unless otherwise noted, all amounts are in Canadian currency.
Chief Executive Officer, Mr. Alexander Massoud stated, "The Company remains a strong believer in the potential of its projects in Egypt and in Egypt's mineral-resource sector. During this quarter the Company has taken steps to conserve capital and resources. Although our projects are some 400 kilometers from the areas of political unrest, due to this unrest and the prevailing negative global market conditions, we will
assess when it is appropriate to resume our exploration program." Mr. Massoud further commented, "The technical fundamentals of our projects, in particular those of the Hamama deposit have not changed, and, although recent political events in Egypt are unsettling, we believe this transition will create an opportunity to access financing from regional and local markets. I reiterate, when comparing Hamama to other major VMS deposits in the Arabian-Nubian Shield, the Main VMS Horizon at Hamama, extending 3,000 meters along strike, is one of the largest. This fact, combined with positive diamond drill results and a broad zone of at-surface high-grade gold-silver mineralization, supports AAN's strong belief that the Abu Marawat Concession has the potential to host a major VMS deposit."
Contingent on fundraising, 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.
Selected Financial Metrics
Six months Six months
ended June 30 ended June 30,
Evaluation and exploration expenditures $ 331,331 $ 785,766
Loss from operations 663,943 1,205,336
Total comprehensive loss for the period 663,943 1,205,336
Basic and diluted loss per share $ 0.01 $ 0.01
As at June 30, As at December
2013 31, 2012
Total cash on hand (cash and cash
equivalents including restricted cash) $ 100,386 $ 237,674
Current liabilities 1,204,930 1,164,739
Working capital (1,086,022) (896,093)
Total assets 534,111 719,579
Review of financial performance for the quarter
The Company incurred a net loss of $235,307 for the three months ended June 30, 2013, representing a decrease of $200,650 when compared with $429,957 for the three months ended June 30, 2012. The decrease in net loss during the three months ended June 30, 2013 was primarily the result of the decrease in:
* Evaluation and exploration expenditures of $93,713; and
* Professional and consulting fees of $134,106.
This decrease was partially offset by the increase in:
* Share-based payments of $2,273; and
* Finance expense by $13,466.
The Company incurred the following evaluation and exploration expenditures at the Abu Marawat Concession during the six months ended June, 2013.
For the six months ended
June 30, 2013 June 30, 2012 (decrease)
Concession access $ - $ 2,983 $ (2,983)
Labour 16,612 123,718 (107,106)
Field costs 28,898 92,425 (63,527)
Geological services - 114,228 (114,228)
Assaying 86,414 206,851 (120,437)
Travel 16,206 12,398 3,808
148,130 549,620 (404,473)
Concession administration * 183,201 227,163 (43,962)
$ 331,331 $ 779,766 $ (448,435)
*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 decrease in exploration expenditures during the six months ended June 30, 2013 was primarily the results of the decrease in exploration activities on Abu Marawat Concession.
Foreign exchange loss decreased by $15,035, to $1,246 for the six months ended June 30, 2013, from $16,281 for the six months ended June 30, 2012, due to fluctuations in the foreign currency exchange rates between the Canadian dollar, US dollar and Egyptian pound.
Share-based payments for the six months ended June 30, 2013 were $20,950 versus $0 for the six months ended June 30, 2012. This increase in share-based payments for the six months ended June 30, 2013 resulted from the increase in number of options vesting during the period and a corresponding recognition of the related expense.
Finance expense was $30,745 for the six months ended June 30, 2013 compared to $2,150 for the six months ended June 30, 2012. The finance expense was due to the convertible debentures of $215,000 issued on May 29, 2012.
The overall decrease in comprehensive loss for the six months ended June 30, 2013 compared to the six months ended June 30, 2012 is primarily the result of the decrease in level of exploration and business activities during the six months ended June 30, 2013.
At June 30, 2013, the Company had working deficiency of $1,086,022, including cash of $100,386 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 six months ended June 30, 2013, the restricted cash of US$78,283 was released.
Based on the cash position on hand as at June 30, 2013, and expected cash flow requirements of the Company for the next twelve months, the Company will require additional funds to meet its present operational commitments and working capital needs.
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, the latter 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- and second-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
Canada: +1 (604) 727-1813
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.
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Source: Alexander Nubia International Inc. (TSX.V - AAN) www.alexandernubia.com
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