Creston Moly Corp.
TSX VENTURE : CMS

Creston Moly Corp.

December 01, 2009 09:00 ET

Creston Reports Annual Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 1, 2009) - Creston Moly Corp. (TSX VENTURE:CMS) ("Creston") today announces its financial results for the year ended July 31, 2009. During 2009 the Company incurred a net loss of $5,520,305 (2008 – $3,209,891) which reflected the Company's continued activities in Mexico, foreign exchange losses, reorganization costs and a $2,601,450 finder fee provision arising on the loss of an arbitration dispute. The arbitration decision is being contested.

At July 31, 2009, the Company had a working capital deficiency of $239,598 (2008 – working capital of $5,112,325). Subsequent to July 31, 2009, the Company completed the acquisition of Tenajon Resources Corp. by way of a plan of arrangement that added more than $2,500,000 of cash to the combined entity and the Ajax and Moly Brook properties. Full details of the plan of arrangement were included in the definitive Arrangement Agreement and Management Information Circular prepared and filed with the regulatory authorities and mailed to Tenajon's shareholders in accordance with applicable securities laws. Following the completion of the Tenajon acquisition, D. Bruce McLeod was appointed as President and CEO, Colin K. Benner as Executive Chairman, Wayne Johnstone as CFO and Brenda Nowak as Corporate Secretary. The new Board of the Directors of Creston following completion of the plan of arrangement consisted of Colin K. Benner, D. Bruce McLeod, Richard Godfrey, John McCleery, John Robins and Dr. Michael Gunning.

The Company's operating activities used cash of $1,275,855 (2008 – $2,811,955) during the twelve months ended July 31, 2009, arising from a net loss of $5,520,305 (2008 – $3,209,891), adjusted for add-back of non-cash items for amortization of $25,597 (2008 – amortization of $24,891), stock based compensation expense of $270,035 (2008 – $1,301,400), recovery of future income taxes of $102,000 (2008 – $nil) and from changes in non-cash working capital items of $4,050,818 (2008 – ($928,355)).

During the twelve months ended July 31, 2009 the Company invested a total of $6,689,283. In 2009 a total of $4,983,714 was invested in mineral property expenditures, $1,734 was spent on equipment purchases, $85,335 was expended in connection with the Tenajon acquisition and $1,618,500 was placed in escrow to be held for payment of the arbitration award. During the twelve months ended July 31, 2008 the Company invested a total of $5,376,176. A total of $5,339,738 was invested in mineral property expenditures on the Creston Project and $36,438 on the acquisition of equipment.

During the twelve-month period ended July 31, 2009, the Company's financing activities generated gross proceeds of $3,539,999 pursuant to a $3,000,000 private placement and the exercise of 599,999 warrants. During the twelve months ended July 31, 2008, the Company issued 2,477,501 shares at an average price of $0.19 per share pursuant to the exercise of stock options and share purchase warrants.

All financial information contained herein should be read in conjunction with the Company's Management Discussion and Analysis and audited consolidated financial statements for the years ended July 31, 2009 and 2008 and related notes thereto available under the Company's profile on www.sedar.com.

On November 19, 2009 the Company received conditional regulatory approval of an incentive program to encourage the early exercise of up to 31,473,000 warrants. Under the terms of the program the original warrants will be amended to enable holders to receive a unit for each original warrant exercised before 4:30 PM on December 9, 2009 in lieu of one common share. Each unit will consist of one share and one-half of a warrant. Each whole warrant will allow the holder to acquire an additional common share of the Company at a price of $0.24 per share for a period of two years.

About Creston Moly Corp.

Creston Moly Corp. is a Canadian mineral exploration company focused on the development of its molybdenum deposits in Canada and Mexico. The Company's properties consist of the El Creston property located 145 kilometers north east of Hermosillo, Sonora State, Mexico, the Moly Brook property located 2.5 kilometers from the hamlet of Grey River, Newfoundland and the Ajax Property located 13 kilometers north of Alice Arm, British Columbia.

On Behalf of the Board of Directors

CRESTON MOLY CORP.

D. Bruce McLeod, President & CEO

Forward-Looking Statements

This document may contain "forward-looking statements" within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date of this document and Creston does not intend, and does not assume any obligation, to update these forward-looking statements.

Forward-looking statements relate to future events or future performance and reflect Creston management's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Creston to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in Creston's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. Although Creston has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

Accordingly, readers should not place undue reliance on 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 release.

Contact Information

  • Creston Moly Corp.
    Mr. Bruce McLeod
    President & CEO
    604-687-7545 or (888) 338-2200 (TOLL FREE)
    or
    Creston Moly Corp.
    Chris Curran
    Investor Relations
    604-687-7545 or (888) 338-2200 (TOLL FREE)
    or
    Creston Moly Corp.
    Ken MacDonald
    604-694-0005
    604-689-5041 (FAX)
    www.crestonmoly.com