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CALGARY, ALBERTA--(Marketwire
- Sept. 2, 2009) - Kirrin Resources Inc. (TSX VENTURE:KYM) today
reported its 2009 second quarter financial results and operational
highlights.
The Company is in the exploration and development stage of its
operations but recorded net income for the period of $218,000 (Q2 2008:
restated net income $434,000) as a result of settling outstanding
contractual matters in relation to the disposal of a subsidiary company
in Q2 2008. No general and administration expenses were capitalized in
Q2 in either 2009 or 2008.
Significant progress was made in controlling general and administration
expenses, which decreased by 37% to $146,000 from $230,000, excluding
stock based compensation expense. Salaries and benefits, financial
administration, audit, general office and miscellaneous, and travel and
marketing decreased by $48,000 (61%), $12,000 (26%), $3,000 (26%),
$8,000 (41%) and $36,000 (98%) respectively. The principal factor
behind these decreases was the disposal of the Company's diamond
division in Q2 2008. Legal expense increased by $18,000 (129%) and
investor relations expense by $5,000 (21%) due largely to the costs of
the Company's capital restructuring approved at the AGM on May 1, 2009.
The decrease in stock based compensation expense is a consequence of
the repricing of stock options approved at the same meeting. General
and administration expense, excluding stock based compensation,
decreased by $287,000 (49%) during the six months ended June 30, 2009.
Cash outflows used by operating activities in the second quarter of
2009 amounted to $118,000, compared to cash outflows in the second
quarter of 2008 of $336,000. Cash resources at the end of the period
amounted to $35,000, down from $2,077,000 (restated) in the
corresponding period in 2008. The Company had negative working capital
of $93,000 compared to positive working capital of $1,800,000 in 2008. The
Company has no interest bearing debt and has advanced its plans to
improve its working capital.
Operational Highlights:
The business climate continues to present difficulties to junior
companies and Kirrin's management has focused on restructuring and
stabilisation to meet current challenges and to position the Company to
participate in future growth opportunities. While no field operations
were carried out on the Company's portfolio of properties during the
quarter under review, the quarter was very active in three respects.
Firstly, the Company completed a wide ranging review of opportunities
in relation to its objective to identify suitable uranium companies and
assets for acquisition, merger, strategic partnership or joint venture.
On June 17, 2009, the Company announced that it had entered into an
option agreement with Kodiak Exploration Ltd. ("Kodiak")
allowing it to earn up to a 70% interest in Kodiak's Otish Basin
uranium property portfolio located in Quebec, Canada. The transaction
is subject to supplementary due diligence, contract and to regulatory
approval.
Secondly, following an extensive review of the results of the 2008
exploration program, management determined, subject to the availability
of funding, that those results warranted further exploration on each of
the three properties, Alexis River, Boxey Point and Lost Pond. Detailed
exploration plans will be announced shortly.
Thirdly, the Company successfully negotiated the settlement of various
contractual issues, including the disposition of escrow funds, arising
from the sale of its South African assets in 2008. As a result, Kirrin
recorded additional profit of $362,000 in Q2 2009 from the sale and
received this amount in August.
Additional information relating to Kirrin, including Kirrin's quarterly
report, management's discussion and analysis and unaudited financial
statements for the quarter ended June 30, 2009, is available on
Kirrin's web site at www.kirrinresources.com and on SEDAR at www.sedar.com.
Kirrin is engaged in uranium exploration in Newfoundland & Labrador
and in the expansion of its portfolio through acquisition, merger,
strategic partnership or joint venture. Its strategy is well defined:
enhancing shareholder value by combining technical expertise, corporate
development skills and professional management. Kirrin's shares trade
on the TSX Venture Exchange under the symbol KYM.
To receive company news releases via e-mail, please advise catarina@chfir.com
and specify "Kirrin News" in the subject line.
Forward-looking information: Except for statements of historical fact,
all statements in this news release, without limitation, regarding new
projects, acquisitions, future plans and objectives are forward-looking
statements which involve risks and uncertainties. There can be no
assurance that such statements will prove to be accurate; actual
results and future events could differ materially from those expressed
or implied by such forward-looking information. Risks include delays in
obtaining or failure to obtain regulatory approval. Except as required
by applicable securities legislation, the Company undertakes no
obligation to publically update or revise forward-looking information,
whether as a result of new information, future events or otherwise.
Neither 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 release.
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