PRESS RELEASE
August
6, 2009 - TORONTO, ONTARIO, CANADA
Symbol:
"NAC" Toronto Stock Exchange
North Atlantic Issues Financial Statements and MDA for the Second
Quarter of 2009
North Atlantic Resources Ltd.
("North Atlantic" or the "Company") has filed its Interim
Financial Statements and Management's Discussion and Analysis, for the
three-month period ended June 30, 2009 on SEDAR at www.sedar.com. The documents
are also available on the Company's website at www.nac-tsx.com.
For the
three months ended June 30, 2009, the Company recorded a loss from operations
of $5,943,000 or $0.23 per share, compared to a loss of $639,000 or $0.03 per
share for the same period of 2008. Included in the current period loss was the
write down of mineral properties and deferred exploration costs in the amount
of $5,823,000 compared to $393,000 in the same period of 2008. This significant
write down of assets was taken in light of the current financial market
conditions, the Company's market capitalization, its minimal cash position and
its exploration plans for the future. The Company has significantly reduced its
operating costs in 2009, by cutting all compensation and discretionary
expenditures.
Cash and
cash equivalents at June 30, 2009, totalled
$53,000, compared to $561,000 at December 31, 2008. The net working capital
position at June 30, 2009 was $19,000. As the Company's cash resources are now
at minimal levels, the Company's activities are on a care and maintenance basis
and a significant amount of costs have been reduced.
At present, the Company is
actively seeking additional private placement equity financing to maintain its
exploration operations and administrative costs. In addition, it is also
seeking to joint venture, sell or option certain of its exploration properties.
No assurances can be given that any of these financing activities will be
successful.
The Company has continued to
advance its gold projects in the Republic of Mali ("Mali"), with
termite mound and soil geochemical surveys being completed over portions of all
the Company's permits. During the period, Auger drilling was completed on the
Company's FT Gold project. The Auger drilling was designed to locate and
delineate possible strike extensions of the existing resource for future
drilling. The Auger drilling was also used to test for possible parallel zones
of mineralization to the FT resource.
In June 2009, the Company
established a Technical Committee (the "Committee") to provide
strategic planning and technical oversight for the Company's exploration plans.
As a result of the Committee's actions, Dr. Michael Baker of the United Kingdom
was engaged to examine the FTM District from the district scale for structural
and regolith interpretation. The FTM District (Foulalaba-Tiekoumala-M'Panyala
Permits) is centred on the FT gold occurrence discovered by North Atlantic in
2006. The drill indicated resource at FT, although significant, requires
additional work to define its economic potential. The property which hosts the
FT gold occurrence also has many unresolved and highly anomalous gold
occurrences which have been considered by Company personnel to have significant
discovery potential. Dr. Baker's conclusions formed the basis for a technical
review that confirmed for the Company that the FTM area exhibits the geological
diversity and structural complexity generally considered to be necessary for
the development of significant gold deposits. Fifteen areas of interest for
additional exploration have been identified within the FTM permit areas.
North Atlantic continues to plan
for the future exploration and assessment of the potential for the development
of an economic gold resource at FT.
Scott Waldie, President of North
Atlantic, said "The past twelve months of the global recession and credit
crisis have made the economic circumstances for junior explorers, including
North Atlantic Resources Ltd., very difficult. Despite improved commodity
prices over the past six months capital for high risk mineral exploration is
difficult to obtain. It is uncertain how long the capital markets for junior
explorers will remain weak. The recent stock market rally will help to
encourage the deployment of risk capital on reasonable terms if commodities can
maintain their present levels. During this period of challenge your Company
continues to encourage others to participate in the exploration of our properties
through earn-in joint venture arrangements or other advantageous option
arrangements. We consider that our gold and uranium properties posses
considerable economic and exploration potential. We remain committed and
determined to advance the exploration of our properties in West Africa."
"North Atlantic Resources
Ltd. continues to pursue a policy of attempting to monetize our oil and gas
permit in the Republic of Mali and our uranium exploration permits in the
Republic of Niger. Management of North Atlantic take recognizes the inherent
long term value that these permits represent. Management is confident that
other potential investors will share our view."
North
Atlantic has 25,723,741 common shares issued and outstanding (29,288,741 shares
on a fully diluted basis).
Please visit the Company's website www.nac-tsx.com
to view project details and planned exploration programs going forth.
FOR FURTHER INFORMATION PLEASE CONTACT:
North Atlantic Resources Ltd.
Scott Waldie,
President and CEO
(416) 703-6348
swaldie@nac-tsx.com
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This press release has been prepared by North Atlantic Resources Ltd.
and no regulatory authority has approved or disapproved the information
contained herein.
Statements relating to the estimated or expected
future production and operating results and costs and financial condition of
North Atlantic Resources Ltd., planned work at the Company's projects and the
expected results of such work are forward-looking statements. Forward-looking
statements are statements that are not historical facts and are generally, but
not always, identified by words such as the following: expects, plans,
anticipates, believes, intends, estimates, projects, assumes, potential and
similar expressions. Forward-looking statements also include reference to
events or conditions that will, would, may, could or should occur. Information
concerning exploration results and mineral reserve and resource estimates may
also be deemed to be forward-looking statements, as it constitutes a prediction
of what might be found to be present when and if a project is actually
developed. These forward-looking statements are necessarily based upon a number
of estimates and assumptions that, while considered reasonable at the time they
are made, are inherently subject to a variety of risks and uncertainties which
could cause actual events or results to differ materially from those reflected
in the forward-looking statements, including, without limitation: uncertainties
related to raising sufficient financing to fund the planned work in a timely
manner and on acceptable terms; changes in planned work resulting from
logistical, technical or other factors; the possibility that results of work
will not fulfill projections/expectations and realize the perceived potential
of the Company's projects; uncertainties involved in the interpretation of
drilling results and other tests and the estimation of gold reserves and
resources; risk of accidents, equipment breakdowns and labour disputes or other
unanticipated difficulties or interruptions; the possibility of environmental
issues at the Company's projects; the possibility of cost overruns or
unanticipated expenses in work programs; the need to obtain permits and comply
with environmental laws and regulations and other government requirements;
fluctuations in the price of gold and other risks and uncertainties, including those
described in the Company's Annual Information Form filed with SEDAR in Canada
(available at www.sedar.com) for the year
ended December 31, 2008.
Forward-looking statements are based on the beliefs,
estimates and opinions of the Company's management or its independent
professional consultants on the date the statements are made.
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