ECU Silver Mining Inc.
TSX : ECU

ECU Silver Mining Inc.

November 13, 2007 15:13 ET

ECU Silver Announces Third Quarter Financial Results and Appointment of a Chief Financial Officer

TORONTO, ONTARIO--(Marketwire - Nov. 13, 2007) - ECU Silver Mining Inc. (TSX:ECU) is pleased to announce that financial results for the quarter ended September 30, 2007 and corresponding Management Discussion & Analysis have been filed and are available on Sedar (sedar.com) and the Company website www.ecu.ca.

Third Quarter Highlights

The Company has again completed another exciting quarter from an exploration and development perspective. Our decision to temporarily reduce production and emphasize exploration and development has returned considerable success. In the past three months alone, the Company has announced significant exploration results within its Velardena District Properties (comprised of the Velardena, Chicago and San Diego properties).

These recent results include the discovery of the lateral extensions of the Terneras Vein which has historically been the most prominent vein on the Velardena Property. These lateral extensions have the potential for extensive continuity which in turn could yield significant additional resources. Our exploration program has also resulted in identifying depth continuity on several veins within the district where we expect vertical extensions of several hundred metres consistent with the geological model that is pervasive in the region. Finally our exploration efforts are quickly advancing our understanding of the Mineralized Corridor at the Santa Juana mine where we have been interpreting a series of vein packages that will likely be amenable to bulk mining techniques thereby allowing for much lower cost mining in the future.

The Company plans to release N.I. 43-101 compliant mineral resources report in the 4th quarter of this year. Micon International has been contracted to prepare it.

Financial Summary

The Company is pleased to provide Shareholders with the following financial highlights and operating results for the three months ending September 30, 2007. All numbers are in Canadian dollars unless otherwise mentioned.

In the 3rd quarter of 2007, revenues of $432,201 were generated from metals sales, compared with $784,214 in the same period in 2006. The difference is essentially due to less silver, lead and zinc being produced as a result of a shift in focus towards exploration and mineral resource definition and delineation. This work started in late 2006 and has been accelerated in the 2nd and 3rd quarter of 2007 when essentially all the material processed in the mill came from development headings and bulk mining test stopes in new areas of the Mineralized Corridor that are being evaluated.

The net loss for the 3rd quarter of 2007 was $1,493,464 or $0.01 per share, compared with net loss of $2,116,894 or $0.01 per share for the same period in 2006. The change is due to the shift in focus from production to exploration and development at the mines and additional administration costs described above.

During the 2nd quarter of 2007, ECU Silver completed a brokered private placement and issued an aggregate of 12,500,500 Units for total gross proceeds of $28,751,150 before share issuance expenses and commissions of $1,808,673. The net proceeds of this financing are to fund acquisition of titles, technical studies, land acquisition, construction, mineral exploration and development on its properties as well as for new property acquisitions and for general working capital purposes.

In the 3rd quarter, the Company made capital investments for an amount of $8,601,234 in exploration and the acquisition of properties, plant and equipment (including US$4.5 million to acquire the "Velardena Claims") compared with $1,149,185 in the same period in 2006.

As of September 30, 2007, the Company had positive working capital of $6,963,430, compared with negative $4,840,319 as of December 31, 2006 as a result of an increase in cash and cash equivalents generated by a brokered private placement in the 2nd quarter of 2007.

Cash flows relating to operating activities for the 3rd quarter 2007 were negative $1,994,434 compared to negative $2,676,970 over the same period in 2006.

New Chief Financial Officer

ECU Silver is also pleased to announce the appointment of Dwight Walker, effective November 19, 2007 as Chief Financial Officer for ECU Silver.

Mr. Walker has 30 years of extensive experience in financial and administrative management in the manufacturing, distribution, retail, and public accounting sectors. He has worked in large and small corporate environments including Ernst & Young, Patheon Group and Richards Packaging a TSX listed public company where he was most recently Director, Administration reporting directly to the CFO. Mr. Walker is a Certified General Accountant and has his Bachelors in Mathematics from the University of Waterloo.

The Company also wishes to announce that Richard Buzbuzian's contract has expired and Mr. Buzbuzian is pursuing other opportunities. We wish to thank Richard for his hard work and contribution to the Company.

About ECU

With executive offices in Toronto, Ontario, ECU Silver Mining Inc. (www.ecu.ca) is a Canadian silver and gold mining and exploration company that is involved in the evaluation, development and mining of precious metal deposits in Mexico. The Company owns the historically prolific Velardena Property which holds five historical mines and a milling operation in the state of Durango, Mexico. ECU's goal is to become one of Mexico's largest producing silver mines. ECU's common shares are listed on the TSX under the trading symbol ECU.

Statements in the release that are "forward-looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially. We undertake no duty to update any forward-looking statement to conform the statements to actual results or changes in our expectations.

Contact Information

  • ECU Silver Mining Inc.
    Stephen Altmann
    President
    (416) 644-8640
    (416) 644-8801 (FAX)
    Website: www.ecu.ca